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Deloitte comments on FASB's proposal to clarify its guidance on contributions

Published on: Nov 06, 2017

Deloitte & Touche LLP comments on the FASB's Proposed ASU Clarifying the Scope and Accounting Guidance for Contributions Received and Contributions Made, which was issued in August 2017.

An excerpt from the comment letter is shown below:

We support the Board's efforts to reduce diversity in practice by clarifying and improving the accounting guidance on contributions received and contributions made. We generally believe that the proposed ASU's amendments would help ensure that the guidance is applied consistently because they would clarify the differences between exchange transactions and contributions, including those related to (1) a barrier to entitlement and (2) a right of return of assets or a release from an obligation to transfer assets in the determination of whether a contribution is conditional or unconditional. However, we believe that additional examples of how the principles in the standard should be applied by business entities that receive grants would be helpful. Accordingly, we suggest that the Board add implementation guidance to clarify its intentions for business entities that receive grants regarding teh applicability of the proposed ASU's provisions.

For more information, see the full text of the comment letter which is available below.


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