Proposed ASU Collaborative Arrangements
Due to the implementation deadlines for Topic 606, FASB has issues a proposed ASU that will help companies decide whether a collaborative arrangement should be in the scope of Topic 606. This will help address diversity in practice and leverages the concepts of customer and distinct goods and services already found in Topic 606.
Behind the Scenes at GLS
During this slow week in accounting news, Melisa provides a brief look behind the scenes at Galasso Learning Solutions. We went live with a new website and introduced an exciting new webinar offering available directly to you.
Proposed Changes to DCF
The Federal Audit Clearinghouse (FAC) has issues proposed revisions to the Data Collection Form (DCF). This form is used to make the results of Single Audits publicly available. Non-federal entities and their auditor’s should review the proposed changes and consider providing feedback.
Q1 2018 in Review
Q1 was a relatively quiet quarter in terms of final standards. The FASB issued five Accounting Standard Updates (ASUs) and 5 Staff Q&As related to the tax cuts and jobs act (TCJA). The AICPA issued an interpretation and two TPAs. GASB had no final standards issued during the quarter.
Proposed Ethics Interpretation – Information System Services
The AICPA’s Professional Ethics Executive Committe (PEEC) is proposing some revisions to independence rules related to financial information systems. Addressing the issues of self review and management participation, the interpretation provides updated guidance regarding when independence is impaired for work performed as a non attest service related to a clients IT systems.
Proposed ASU: Cloud Computing
FASB has issued a proposed ASU to clarify the proper accounting for implementation costs of cloud computing arrangements that are part of a service contract. The proposal would permit the capitalization of cost in compliance with the software for internal use guidance.
Proposed ASU: New Benchmark Interest Rate
FASB has issued a proposal to permit the use of a new benchmark interest rate for hedging purposes. Proposed ASU 2018-220 proposes the addition of the OIS based on SOFR to the list of permitted benchmark rates.
GASB ITC – Revenue & Expense Recognition
GASB has issued an Invitation to Comment (ITC) that offers two models for revenue recognition. It proposes an exchange / nonexchange model similar to today’s model but updated for implementation issues. It also proposes a performance obligation / no performance obligation model that would be similar to the FASB / IASB Revenue Recognition model. Comments are due April 24th.
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