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2016

September 20, 2016 — FASB Proposes Additional Technical Corrections and Improvements to New Revenue Standard

FASB Proposes Additional Technical Corrections and Improvements to New Revenue Standard

Accounting Journal Entry
September 20, 2016
On May 18, 2016, the FASB issued a proposed Accounting Standards Update (ASU)1 (the “May proposed ASU”) that would amend certain aspects of the Board’s new revenue standard, ASU 2014-09.2 On August 31, 2016, the FASB met to discuss the feedback received in response to the nine issues included in the May proposed ASU.3 The FASB also discussed additional potential technical corrections (the “phase two amendments”) that were not included in the May proposed ASU because they were not identified until after the January 20, 2016, Board meeting on the revenue technical corrections. These items include:
  1. Amendments4 to clarify the scope for fees from financial guarantees in ASC 942-825-50-2 and ASC 310-10-60-4.
  2. Amendment of Example 38, Case B, of ASU 2014-09 to "more clearly link the analysis in that example with the receivables presentation guidance in paragraph 606-10-45-4."5
  3. Amendment to clarify Example 40 of ASU 2014-09 by removing the reference to "contract liability" to describe a refund obligation.
  4. Reinstatement of the guidance in ASC 340-20-25-2, which addresses the accrual of certain advertising expenses.

Footnotes