News & Insights
See below for recent updates to accounting standards and news
Revenue Recognition - Implementation issues facing new Standard
The AICPA has formed 16 industry task forces to help develop a new Accounting Guide on Revenue Recognition that will provide illustrative examples of how to apply the new Revenue Recognition Standard.
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Based on the work of the industry task forces and review of the AICPA’s Revenue Recognition Working Group, the AICPA’s Financial Reporting Executive Committee (FinREC) has issued several working drafts of accounting issues related to the implementation of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and is requesting your feedback.
FASB simplifies Goodwill impairment test
The FASB recently issued ASU 2017-04 to simplify how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The ASU has staggered effective dates beginning in 2020. To read full draft of the ASU click the link below.
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FASB clarifies scope of asset derecognition guidance
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FASB recently issued a standard that clarifies the scope of its asset derecognition guidance and adds accounting guidance for partial sales of non-financial assets. The guidance is included in Accounting Standards Update No. 2017-05, Other Income—Gains and Losses From the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets. The amendments differ from current GAAP primarily for the real estate industry but may also affect other industries such as power and utilities, alternative energy, life sciences, and shipping.
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