FASB Issues ASU Providing New Practical Expedient for Private-Company Franchisors

The FASB has issued Accounting Standards Update (ASU) No. 2021-02, Franchisors — Revenue From Contracts With Customers (Subtopic 952-606): Practical Expedient. The ASU provides “a practical expedient that simplifies how private company franchisors analyze certain activities when determining their performance obligations in a franchise agreement.”

For more information, see the press release on the FASB’s Web site.