Challenges in keeping up with GAAP have never been greater, with pervasive changes in revenue recognition requirements set to hit most private companies this year, to be closely followed next year by getting most leases on the balance sheet for the first time. These confusing standards, along with the usual host of less widespread financial reporting changes, are daunting (to say the least). (more…)
Revenue Recognition Update - Step 1: Identify the Contract with the Customer)
Revenue recognition is getting a lot of attention since ASC Topic 606 “Revenue from Contracts with Customers” was first issued in 2014. Since that date, we have had several posts on our blog that focus on some of the details and changes related to the new standard. As we get closer to implementation, it is time to take a closer look. (more…)
FASB Shines a Light on “Going Concern”
Historically originating through the lens of the independent auditor, whose auditing standards require the auditor to consider “going concern” matters and potentially include cautionary language in the auditor’s report, all companies that issue GAAP-based financial statements are now required to perform their own evaluation and provide explanatory footnote disclosures in defined circumstances. (more…)
GAAP Gets Easier, now that’s a First! (ASU 2009-13 and ASU 2009-14)
When you go to buy a car, yeah, you’re buying a massive computer system these days, but when it all boils down, you went to purchase a car, that’s why you went to the car lot not to Fry’s. The accounting rules for revenue recognition for sales involving multiple element arrangements, like buying a car with a computer, have recently become a whole lot easier. Many public companies like Apple early adopted these new accounting rules because they allow the company to accelerate the period of recognizing revenues. In Apple’s case…