Month: July 2019

Go to Source Author: Our Technical Line highlights key implications of the new revenue standard for retail and consumer products entities. This publication has been updated to address considerations for private label and co-branded credit card arrangements. It supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606), and should be read in conjunction with...

Go to Source Author: One new accounting pronouncement is effective for the second quarter of 2019 for calendar-year entities. All entities should carefully evaluate which accounting requirements apply to them for the first...

Go to Source Author: Accounting for indefeasible rights of use (IRU) contracts can be complicated, and determining whether such a contract is a lease or contains a lease in accordance with ASC 842 requires careful consideration of the terms of the contract. Our Technical Line walks through the criteria that a purchaser (lessee) should consider when determining whether an IRU contract is or contains a lease and, if so, whether a lessee should classify the lease as an operating or finance...

Go to Source Author: The FASB staff told the Board at a public meeting that it responded to a technical inquiry by saying that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. The staff made the comments in response to questions that arose after the FASB issued final guidance clarifying that receivables related to operating leases are not in the scope of the new credit impairment guidance and should instead be accounted for under ASC...

Go to Source Author: The FASB decided to reconsider its philosophy on establishing effective dates for major projects for private companies, not-for-profit organizations and smaller public companies. The Board added a project to its agenda and tentatively decided to defer certain effective dates for its new standards on credit losses, hedging and leases. The Board also added a separate project to defer the effective dates for its new insurance standard for all...