FASB makes technical improvements to revenue recognition standard

The changes address 13 narrow issues.

FASB issued technical improvements to its new revenue recognition standard to address 13 narrow issues related to the standard.

The amendments affect:

  • Loan guarantee fees.
  • Impairment testing related to contract costs.
  • The interaction of impairment testing related to contract costs with guidance in other topics.
  • Provisions for losses on construction-type and production-type contracts.
  • Clarification that all contracts within the scope of FASB Accounting Standards Codification Topic 944, Financial Services—Insurance, are excluded from the scope of the revenue recognition standard.
  • Disclosure of remaining performance obligations.
  • Disclosure of prior-period performance obligations.
  • An example related to contract modifications.
  • Contract assets vs. receivables.
  • Refund liability.
  • Advertising costs.
  • Fixed-odds wagering contracts in the casino industry.
  • Cost capitalization for advisers to private funds and public funds.

The amendments take effect at the same time as the new revenue recognition standard, which is effective for public companies for annual and interim reporting periods beginning after Dec. 15, 2017.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

8 sentences to help you master subject-verb agreement

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.