Revenue recognition has been one of the hottest topics in the financial reporting and compliance industry for over two years. Now, with 14 months left to implement, a new study shows that 83% of public companies have not started preparing. The time to act is now, and the place to start is here, in this 3-part blog series on the basics of the rev rec standard and tips and tricks for implementation.
Earlier this year, the FASB issued an update to ASC 718 as part of its Simplification Initiative – ASU 2016-09. In part 1 of our blog series, ASC 2016-09: Simple But Complex, we explored the changes to accounting for income taxes and the elimination of the APIC pool. In the second part, we discussed accounting for forfeitures. The third, and final, part of our blog series will focus on minimum statutory tax withholding requirements (to avoid liability accounting treatment).
On March 30, 2016, the FASB issued an ASC 718 update, ASU 2016-09, as a part of its Simplification Initiative. In part 1 of our blog series, ASC 2016-09: Simple But Complex, we explored the changes to accounting for income taxes and the elimination of the APIC pool. Here we will discuss another key provision of the FASB’s new standard, accounting for forfeitures.
As part of its Simplification Initiative, FASB issued ASU 2016-09 on March 30, 2016, an update to ASC Topic 718. For public business entities, the amendments in ASU 2016-09 are effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. There are a few key provisions of the new standard, here we will focus on accounting for income taxes and elimination of APIC pool.
Since 1973, the Financial Accounting Standards Board (FASB) has been tasked with establishing standards of financial accounting that govern the preparation of financial reports by nongovernmental entities. Arguably even more difficult than the task of maintaining and updating accounting standards is guiding and supporting the implementation of these new standards across all reporting companies. The FASB understands the importance of the two way conversation between preparers and the organization – and the impact feedback can have on successful adoption of new accounting standards. The FASB recently published an article describing their three strategies for the consistent application of new standards and discussed their dedication to facilitating a smooth transition.
On September 1, 2015, The Financial Accounting Standards Board (FASB) released the proposed 2016 GAAP Financial Reporting Taxonomy for public review and comment. The proposed 2016 Taxonomy contains updates for accounting standards and other recommended improvements to the official Taxonomy, which is used by public issuers registered with the SEC. As the deadline for submitting comments is approaching, we wanted to encourage you to gather your comments and explore why it is important to take advantage of the opportunity and discuss how this may affect your financial reporting experience.
On September 1, 2015, The Financial Accounting Standards Board (FASB) released the proposed 2016 GAAP Financial Reporting Taxonomy for public review and comment. The proposed changes aim at simplifying the taxonomy by removing elements with low and inappropriate use and reducing redundancies and inconsistencies.
On June 8th, 2015, The Financial Accounting Standards Board (FASB) issued an exposure draft detailing the proposed amendments to the current employee share-based payment accounting standards as part of an initiative to reduce complexity surrounding the current accounting standards. As stated in the exposure draft, the FASB feels that, “The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements.” Here are a few of the main provisions and what they could mean to your current ASC 718 processes.