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ACCOUNTING AND SEC HEADLINES:
Revenue Recognition -- FASB Proposal on Collaborative Arrangements Examined
We have published a new edition of the GAAP Update Service. This new edition discusses the FASB’s recent proposal, Collaborative Arrangements (Topic 808) – Targeted Improvements.
This proposed ASU would clarify that a collaborative arrangement may include components that represent a contract to provide distinct goods or services to a customer who happens to be the company’s collaborative partner. Any such components would thus be accounted for as revenue following the guidance in Topic 606.
The proposal does not comprehensively address the accounting for collaborative arrangements. It also does not address the accounting for nonrevenue components of a collaborative arrangement. The comment letter deadline was June 11, 2018. The effective date will not be known until the FASB redeliberates its proposed conclusions and decides to issue a final standard.
SEC Whistleblower Program -- SEC Proposes Updates to Whistleblower Program
The SEC proposed amendments to the rules governing its whistleblower program. The whistleblower program was established in 2010 to incentivize individuals to report high-quality tips to the SEC and help the agency detect wrongdoing and better protect investors and the marketplace.
After nearly seven years of experience administering the whistleblower program, the SEC has identified various ways in which the program might benefit from additional rulemaking. The proposed rules would, among other things, provide the SEC with additional tools in making whistleblower awards to ensure that meritorious whistleblowers are appropriately rewarded for their efforts, increase efficiencies in the whistleblower claims review process, and clarify the requirements for anti-retaliation protection under the whistleblower statute.
Accounting Changes -- Updated Interpretations of FASB Codification Topic 250 Published
We have published updated interpretations of FASB Topic 250, Accounting Changes and Error Corrections.
This updated interpretation provides:
Consolidation -- FASB Discusses Targeted Improvements to Consolidation Guidance
- Guidance on accounting changes;
- Guidance on corrections of errors; and
- Preferability letter examples.
As reported in its "Summary of Board Decisions" publication, the FASB met on June 27, 2018, and discussed comment letter feedback received on its proposed Accounting Standards Update, Consolidation (Topic 812): Reorganization.
The FASB decided to continue its existing project to reorganize Topic 810, Consolidation.
The FASB instructed its staff to develop nonauthoritative educational material to address the more difficult parts of consolidation guidance with the goal of supporting and supplementing the reorganized authoritative consolidation guidance.
The FAB also ratified the consensus reached at the June 7, 2018 EITF meeting on Issue No. 17-A, “Customer’s Accounting for Implementation, Setup, and Other Upfront Costs (Implementation Costs) Incurred in a Cloud Computing Arrangement That Is Considered a Service Contract."
AUDITING AND INTERNAL CONTROLS HEADLINES:
Auditor's Report -- Practice Issues and Questions & Answers Relating to PCAOB Auditing Standard 3101 Discussed
We have published a new edition of the GAAS Update Service. This new edition of the GAAS Update discusses practice issues and Questions & Answers relating to PCAOB Auditing Standard 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.
The December 30, 2017, January 15, 2018, and January 30, 2018 GAAS Updates discussed in detail the requirements and guidance in PCAOB AS 3101.
Circular A-133 -- OMB Issues 2018 Circular A-133 Compliance Supplement
The White House Office of Management and Budget (OMB) has issued the 2018 Circular A-133 Compliance Supplement.
The 2018 Supplement is effective for audits of fiscal years beginning after June 30, 2017.
The OMB has made changes in the format and applicability of the 2018 Compliance Supplement from prior years. The 2017 Compliance Supplement has not been fully superseded, and the OMB has instructed users to use the 2018 Supplement together with the 2017 Compliance Supplement.
The Table of Contents of the 2018 Supplement describes where it adds, deletes, or supersedes sections in the 2017 Supplement. The portions of the 2017 Supplement that were not superseded or deleted continue to be effective for audits of fiscal years beginning after June 30, 2017.
GASB Standards -- Implementation Focus Areas Beyond OPEB For June 30th Discussed
We have published a new edition of the Governmental GAAP Update Service. This new edition discusses implementation of new GASB standards, including steps governments may want to address prior to the auditors arrival.
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