Month: August 2017

Go to Source Author: We have updated our Financial reporting developments (FRD) publication, Revenue from contracts with customers (ASC 606), to address changes to SEC and SEC staff interpretive guidance on revenue recognition and the staff’s comment that it wouldn’t object if entities that are public business entities only because their financial statements or financial information is included in another entity’s SEC filing use the private company effective date to adopt the new revenue recognition...

Go to Source Author: In our comment letter, we support the Auditing Standards Board’s efforts to improve the quality of ERISA plan audits. We recommend that auditors be required to test only plan provisions where noncompliance could result in a risk of material misstatement to the financial statement amounts or disclosures. We do not believe auditors should be required to report findings resulting from testing those provisions in the auditor’s...

Go to Source Author: Our Technical Line highlights aspects of the revenue recognition standard that some entities are finding particularly challenging to implement and provides examples of how to apply the guidance in these areas. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with...

Go to Source Author: Manufacturing and production companies in various industries have raised questions about how they should account for activities and costs incurred prior to the production of goods under a supply arrangement after they adopt the new revenue recognition standard. As public companies finalize their ASC 606 accounting policies and prepare to adopt the new standard, a consensus has emerged that a number of views related to the accounting for pre-production and tooling activities could be...

Go to Source Author: In our comment letter, we support the Auditing Standards Board’s efforts to improve the quality of ERISA plan audits. We recommend that auditors be required to test only plan provisions where noncompliance could result in a risk of material misstatement to the financial statement amounts or disclosures. We do not believe auditors should be required to report findings resulting from testing those provisions in the auditor’s...