FASB Proposes Amendments to the Accounting for Contract Assets and Contract Liabilities From Contracts With Customers

The FASB has issued a proposed Accounting Standards Update (ASU), Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers. The proposed ASU would “require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606.” Comments on the proposed ASU are due by March 15, 2021. For more information, see the press release on the FASB’s Web site.

The FASB staff recently issued proposed Taxonomy improvements for the proposed ASU.