FASB issues technical corrections and improvements to its new revenue standard
Dec 21, 2016
On December 21, 2016, the US Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue From Contracts With Customers,” which makes minor changes to the Board’s new revenue guidance which is converged with IFRS 15. This ASU is the result up two sets of technical corrections on revenue proposed by the FASB in May and in September this year.
The following topics are addressed:
- Loan guarantee fees
- Contract costs — impairment testing
- Contract costs — interaction of impairment testing with guidance in other topics
- Provisions for losses on construction-type and production-type contracts
- Scope of Topic 606
- Disclosure of remaining performance obligations
- Disclosure of prior-period performance obligations
- Contract modifications example
- Contract asset versus receivable
- Refund liability
- Advertising costs
- Fixed-odds wagering contracts in the casino industry
- Cost capitalisation for advisors to private funds and public funds
Review the press release and ASU on the FASB’s website.
