FASB Standards
Latest News May 20, 2020 - FASB extends date for implementation of ASC 606 for all entities that have not yet adopted the guidance (meaning have not yet issued financial statements)
FASB Board Meeting May 20, 2020
TENTATIVE BOARD DECISIONS
Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.
May 20, 2020 FASB Board Meeting
Revenue from contracts with customers and leases: effective dates for certain entities. The Board discussed comments received and completed its re-deliberations on proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities.
Revenue from Contracts with Customers (Topic 606)
The Board made the following decisions:
1. For franchisors that are not public business entities, the Board affirmed its decision to amend the effective date of Topic 606.
2. For all entities that have not yet adopted the guidance (that is, entities that have not yet issued financial statements or made their financial statements available for issuance reflecting the adoption of Topic 606), the Board decided to amend the effective date of Topic 606. For those entities, the effective date of Topic 606 will be for annual reporting periods beginning after December 15, 2019, and interim reporting periods within annual reporting periods beginning after December 15, 2020. Early application will continue to be permitted.
You can also watch the video of the meeting on youtube.com/watch?v=eFppgvNY7Kw
FASB has issued three documents critical to understanding ASC 606 as it applies to CIRAs
Accounting Standards Update (ASU) No. 2014-09 - May 2014
Accounting Standards Update (ASU) No. 2016-10 - April 2016
Note for practioners - Date January 2020 - Several CPA firms have had direct communications with senior FASB staff regarding revenue recognition for the CIRA industry. FASB is well aware of the divergent positions adopted by CPA firms regarding interpretation of ASC 606 for community associations. FASB position is that they will point us to the standard but will not provide an interpretation. FASB has NO current plans to issue clarifying interpretations at any point in the future. FASB stated that CPAs MAY submit a request to FASB for an agenda item to clarify or further interpret ASC 606 for community associations, but that process would likely take one to two years and there are many other projects in front of this one.
