If you’re paying close attention to the decisions being made by the governing boards for the new revenue recognition guidance, last week was a big deal – or was it?
Spoiler alert: we think it was
The Financial Accounting Standards Board (FASB) refined some of its thinking on disclosure requirements at the group’s most recent gathering which some are calling possibly the last technical update to the new revenue recognition standard.
Boiled down, the FASB weighed in on how to handle aspects of disclosure requirements related to unmet performance obligations, a sticky sticking point up to this point.
You have a variety of sources doing a deep dive on what this means. Here are the facts and our take on the big picture:
* As we’ve noted earlier, three additional meetings have been added to the docket in 2016 for the joint Transition Resource Group (TRG), created to discuss issues arising from implementation of the new guidance.
* The International Accounting Standards Board (IASB) has no plans for further changes to its standard and no plans to join these added TRG meetings.
“With these final updates and corrections due out in the next few months, you should be able to start down the transition path,” said Kathy Pearson, Leeyo’s Director of Technical Accounting.
Pearson said what is likely to come out throughout the next year will be more specific questions and interpretive guidance, “but not wholesale changes” to the guidance.
“Are you going to know 100 percent of what the new guidance means for your company at this time? Probably not,” she said. “But if you know 80 percent, you have enough to get going.”