Month: May 2019

Accounting for digitally distributed content (after adoption of ASU 2019-02) – Media and entertainment

Go to Source Author: As traditional distribution mediums evolve, questions have arisen about how digital download and streaming service providers should account for the licensing and production of movies and television shows. The FASB recently amended the cost guidance in ASC 920-350 and ASC 926-20 for costs incurred to license content and costs incurred to produce content, respectively, in light of evolving business models in the media and entertainment industry. These changes apply to traditional producers and broadcasters, as well as entities with over-the-top streaming platforms. This publication describes considerations for entities that have adopted the guidance in ASU 2019-02. Entities that have not yet adopted ASU 2019-02 should refer to our publication, Accounting for digitally distributed content (before adoption of ASU...

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To the Point – The EITF will address revenue recognition related to contract modifications for licenses of IP

Go to Source Author: The EITF will address two issues related to contract modifications for licenses of IP: (1) accounting for modifications that extend a license term but are not solely a renewal of the terms and conditions of the original license and (2) accounting for the revocation of a license, including conversion of a term software license to a software-as-a-service arrangement. All entities that license IP could be affected by potential standard setting as a result of this...

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To the Point – SEC proposes excluding some smaller reporting companies from accelerated filer status

Go to Source Author: The SEC proposed amending the definitions of accelerated and large accelerated filers. Under the proposed rules, issuers that qualify as smaller reporting companies and have less than $100 million in annual revenues would become non-accelerated filers and would not be subject to any accelerated filing requirements. Consequently, these issuers would not be required to obtain an auditor’s attestation on internal...

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To the Point – FASB proposes simplifying the accounting for income taxes

Go to Source Author: The FASB proposed changes to Accounting Standards Codification (ASC) 740 as part of its initiative to reduce the cost and complexity of applying accounting standards. The proposal would eliminate certain exceptions to the general approach in ASC 740 and clarify aspects of the guidance to increase consistency in how the guidance is applied. Comments are due by 28 June...

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Technical Line – Navigating the requirements for merging with a special purpose acquisition company

Go to Source Author: Being acquired by a special purpose acquisition company (SPAC) offers an alternative to an initial public offering for private companies that want to enter the public markets. Our Technical Line discusses the special accounting and financial reporting requirements for a SPAC and all companies that are considering being acquired by a...

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