Q3 2020 in Review
Each quarter we review what issued as final standards during the quarter. While the Genuine Learning Blog focuses on what’s coming down the pike and tries to encourage participation in due process, we also know its important to be aware of what get’s finalized. The blog looks at the items issued by the AICPA, FASB and GASB that will be effective in the near future.
Topic 606 – Franchisor Practical Expedient
If you thought we were done with Revenue Recognition and Topic 606, you would definitely be surprised to hear that the Financial Accounting Standards Board (FASB) issued an exposure draft this morning to address revenue recognition for franchisors by offering a practical expedient. This standard was foreshadowed in the discussion for ASU 2020-05 which delayed revenue recognition by one year for private entities. Comments are due November 5th.
PCC ED for Share-Option Awards
FASB has proposed its newest PCC alternative for private company GAAP. The proposal would permit the use of 409A valuations for GAAP purposes when valuating equity based options. Comments are due October 1.
Proposed Concept Statement: Elements
FASB has issued a proposed Concept Statement addressing the definition of elements of financial statements. The 10 key elements (assets, liabilities, equity etc.) are getting an update to better define the key components that describe an element. Comments are due November 13th.
