FASB Proposes Technical Corrections in Revenue Recognition Standard

The Financial Accounting Standards Board has proposed a set of technical corrections and improvements to its revenue recognition accounting standard.

FASB and the International Accounting Standards Board issued the revenue recognition standard in May 2014 after a decade of work converging the standard under U.S. GAAP and International Financial Reporting Standards. Since then, they have released several improvements in response to recommendations from a joint Transition Resource Group (see FASB Tweaks Revenue Recognition Standard). FASB also proposed nine technical fixes and improvements to the standard in May of this year, in areas such as preproduction costs related to long-term supply arrangements and impairment testing for contract costs, which FASB is in the process of deliberating.

FASB is now proposing four additional technical corrections and improvements. They relate to loan guarantee fees, contract asset versus receivable, refund liability, and advertising costs.

FASB is asking for comments by Oct. 4, 2016.