All Revenue Recognition articles – Page 10
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Blog
FASB Proposes More Changes to Revenue Standard
FASB is asking for feedback by Nov. 16 on its planned fixes to the revenue recognition standard to address implementation challenges around collectibility, taxes, non-cash consideration, contract modifications, and other technical issues. The board says its proposed amendments should reduce the degree of judgment necessary to apply the new revenue ...
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Today’s Revenue Rule Surprise: Non-Financial Assets
Image: Companies are starting to awaken to yet another wrinkle in the new revenue recognition standard: how it will affect the sale of non-financial assets, such as when you sell off an old property or intangible asset. “If you’re not in the real estate business, you don’t think of the ...
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SEC Frets Over Split in Revenue Recognition Adoption Efforts
Image: Looking for consistency in application of the new revenue recognition standard, SEC Deputy Chief Accountant Wesley Bricker said companies need to do their homework and apply appropriate professional judgment. Bricker called on companies to move forward with implementation efforts “without delay” by understanding the key principles of the new ...
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FASB Proposes Gross-Net Guidance on Revenue Recognition
FASB has proposed an update to its revenue recognition standard to clarify when an entity is acting as the principal in its interaction with a customer or when it is an agent for some other entity, helping a company determine if it should recognize revenue on a gross or net ...
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Taxing Times Ahead on Revenue Standard
Among the many issues companies must address as they adopt the new revenue recognition standard, tax consequences are gaining more attention. The IRS is seeking comment on how burdensome tax reporting might become, and the standard’s fundamental shift in recognizing revenue could make the burden quite heavy. “There’s a lot ...
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IASB Proposes Updates on Revenue Standard
The International Accounting Standards Board has floated a few ideas to help clarify the new revenue recognition standard, and is asking for public comment on the proposals. All three clarifications address performance obligations under the new standard and seek to clarify questions such as who is a principal or agent, ...
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10 More Things Related to Revenue Recognition
One year ago, CW columnist Scott Taub offered 10 initial thoughts on the then-brand new standard for revenue recognition. After working with companies to implement the standard and participating in FASB’s Joint Transaction Resource Group, Taub says he remains optimistic about revenue recognition. Now he has 10 more thoughts on ...
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IASB Follows Suit on Deferring Revenue Recognition One Year
Image: The International Accounting Standards Board has decided to delay the effective date of its revenue recognition standard by one year, just as FASB pushed out its required implementation date to 2018. IASB is delaying the standard because it is working on clarifications to help implementation and because it “keeps ...
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Extra Year on Revenue Standard Means More Time to Sweat
Image: Don’t let your accounting department get too excited with that additional year FASB has granted to adopt the new standard for revenue recognition. Experts helping companies’ implementation efforts say that extra time is much needed, with plenty of questions about the standard remaining unanswered. And don’t forget, “half of ...
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Blog
FASB Approves One-Year Deferral for Revenue Recognition
As long expected, FASB has approved a one-year deferral of the effective date of the new standard on revenue recognition, pushing the adoption requirement out to 2018. The board will also allow companies to adopt the standard as of the original effective date, January 2017, if they are inclined to ...
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Mid-Year Look at Corporate Compliance in 2015
Image: Six months ago Compliance Week Editor Matt Kelly picked six events to watch in corporate compliance for 2015: political risk, Republican activism, confusion over revenue recognition, and more. With the year half over—and in the interests of holding people accountable, including Compliance Week editors—now seems a good time to ...
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Blog
FASB, IASB Work Out Guidance on Gross vs. Net
FASB and IASB have reached tentative decisions on how to address questions in the new revenue standard around when to report revenue on a gross versus net basis. While the boards are moving in different directions of how they will amend their respective guidance, FASB says the amendments to each ...
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Financial Compliance Teams Await Tech Help on Revenue Rule
Improved technology for financial systems will be critical as Corporate America moves to implement the impending new revenue recognition standard. That new tech, however, is slow-rolling its way to your data center, since the standard’s final guidance is still incomplete. “We knew going in we were not playing on a ...
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IRS Ponders Tax Issues of New Revenue Recognition Rules
The Internal Revenue Service is asking for comments on how the new revenue recognition accounting standards will affect tax reporting. Tax rules require companies to secure permission from the IRS if they are making accounting method changes for federal income tax purposes, so the agency is now growing concerned over ...
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Revenue Recognition Implementation Brings Big Challenges
Companies in the vanguard of implementing the new revenue recognition standard are finding it a daunting task requiring major planning and coordination. At the Compliance Week 2015 conference, Bavan Holloway, vice president of corporate audit at Boeing, said companies need to have a strong change management process in place. “It’s ...
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Blog
FASB Proposes Changes to Revenue Standard
FASB has issued proposed revisions to the revenue recognition standard intended to head off the potential for varied interpretation of the standard and to simplify and reduce the cost of compliance in some areas. The board has focused the amendments on identifying performance obligations and accounting for revenue arising from ...
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FASB Seeks Comment on Revenue Delay, IASB Opts to Defer
The Financial Accounting Standards Board has issued a formal proposal to delay the effective date of the revenue recognition rule by one year, just as the International Accounting Standards Board voted to propose a one-year deferral for the international standard. FASB’s proposal is seeking comment on whether a two-year delay ...
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Buying Time With Revenue Standard Delay
Image: FASB might delay implementation of the new revenue recognition standard; corporate financial reporting executives should not. Despite uncertainty on fine points of the standard and business software yet to digest FASB’s seachange in reporting revenue, businesses can do plenty now. “The deferral is telling companies don’t delay in assessing ...
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IASB Considers Deferral for Revenue Recognition Standard
Now that the new revenue recognition standard is likely to be delayed by a year in the United States, the International Accounting Standards Board is recommending a delay until Jan. 1, 2018, for those who file under International Financial Reporting Standards. “We think that it is less confusing for the ...
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FASB Votes for One-Year Deferral on Revenue Recognition
Image: FASB will propose a one-year delay in the effective date of its new revenue recognition standard, while allowing adoption of the original effective date for companies ready to move forward. FASB member Daryl Buck, though initially skeptical of a delay, said, “It would be very difficult to expect [media ...