FASB has an exposure draft out on revenue recognition. This post is a ‘heads up’, not an overall summary. This will be a fairly substantive rule, so if you haven’t heard about it, might be good to take a look. The document has a great summary on the first five pages of the introduction. …
Just a reminder that financial statements should not be referring to FASB documents or other accounting literature, such as FIN 48, FAS 157, FAS 13, FSP 117-1 or any of those other things we know by heart. FASB Statement #168 established the Accounting Standards Codification to replace all the accounting literature then in effect. …
Financial statements should not refer to FASB documentsRead More »
FASB has proposed massive changes to lease accounting. Essentially, all leases with a term over 12 months will be recorded as an asset with an offsetting liability for the lease payments.
This is a casual summary (well, as casual as I can get when discussing accounting). A separate post goes into more technical details.
A very rough analogy is that all leases in the future will be treated in somewhat the same way as a capital lease is handled today. …
Revised accounting for leases – proposed changes to Topic 840Read More »
I have a separate introductory comment on the FASB exposure draft. This more technical post is for the accountants in the audience.
The FASB’s Proposed Accounting Standards Update—Leases (Topic 840) will completely revise the accounting for leases. …
Disclosures for financed receivables (i.e. loans) and the allowance for losses will be dramatically expanded by Accounting Standards Update 2010-20, Receivables (Topic 310) – Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses. …
Expanded disclosures for loans and allowance for credit loss – ASU 10-20Read More »
Fair value disclosures will increase for December 2010 financial statements. Accounting Standards Update 2010-06, Fair Value Measurements and Disclosures (Topic 820) will require a few new items. The two main items I see for small and medium-sized NPOs are first, disclosing transfers in & out of Level 1 & 2, and second, disaggregation of fair value disclosures. …
New accounting rules for mergers and acquisitions of nonprofit organizations are now in effect. In the past, when two nonprofit organizations came together, the accounting was essentially to combine the accounting information of the two entities. This is no longer allowed.
Under the new rules, there are mergers and acquisitions. The accounting for each is quite different. …