neoaccounting

Two FASB staff memos issued last month provide insight to private company financial statement preparers on how to overcome implementation challenges that some have encountered with the new revenue recognition standard. The memos address concerns raised in a  letter  sent to FASB in January by the AICPA Technical Issues Committee (TIC). In the letter, TIC requested private company exceptions to certain elements of Accounting Standards Update No. 2014-09,  Revenue From Contracts With Customers (Topic 606) . FASB’s memos addressed some of the issues raised in the TIC letter. The memos addressed TIC’s statements that: FASB should consider a practical expedient to allow private companies to recognize revenue on out-of-pocket costs based on the amount to be reimbursed when the costs are incurred. The “enforceable rights and obligations” notion for recognizing revenue under Topic 606, described as a “matter of law” in the standard, may require legal expertise and could ...

FASB issued  16 minor amendments  to its new lease accounting standard Thursday, clarifying rules and correcting application of guidance that the board had not intended when it created the standard. The lease accounting standard (codified in Topic 842,  Leases ) was issued on Feb. 25, 2016, and takes effect for public companies and certain other entities in 2019. The amendments issued Thursday include issues brought to FASB's attention by stakeholders who were seeking help with implementation. The amendments affect narrow aspects of the guidance issued in the lease accounting standard. FASB does not expect the clarifications to significantly affect current accounting practice or create significant implementation costs for most entities. Issues addressed in the amendments are: Residual value guarantees. Rate implicit in the lease. Lessee reassessment of lease classification. Lessor reassessment of the lease term and purchase option. Variable lease pay...