FASB ASC 340 Accounting for Other Assets and Deferred Costs - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. To close the loophole, the SEC directed The Financial Accounting Standards Board (FASB) to develop a new lease accounting standard. ASC 340‐20 provides guidance on the amortization, realizability, and disclosure of direct response advertising costs reported as assets. Cover. With the FASB and the IASB coming together, the ASC 606/IFRS 15 will bring global standardization for revenue recognition for organizations financial and revenue reporting. 340-20 Capitalized Advertising Costs 350-20 Goodwill 350-30 Intangibles Other than Goodwill 350-40 Internal-Use Software 350-50 Website Development Costs 360 Property, Plant and Equipment 360-20 Real Estate Sales As a result, when a deferred contract fulfillment cost is greater than a deferred nonrefundable upfront fee, the deferred cost may be amortized over a longer period than it would be under current guidance. An entity that currently accounts for land easements under Topic 840 may not elect this practical expedient. The FASB reviews major standards after issuance through the post-implementation review (PIR) process. The FASB recently issued ASU 2018-01 [1] to ease the adoption of ASU 2016-02, Leases (Topic 842) ... and may only apply the guidance in Example 10 of ASC 350-30 after concluding that a land easement does not meet the definition of a lease in Topic 842. ASU 2015-05 provides that if the CCA includes a software license, the arrangement is in the scope of the internal use software guidance in ASC 340, and an entity should use that guidance to determine which implementation costs should be capitalized. FASB ASC 340-40-25-2 further defines incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. cibc-global.hk. Conclusion. ASC 340‐40 provides guidance on costs incurred related to a contract with a customer. The FASB is currently reviewing Credit Losses, Leases and Revenue Recognition. ASC 325-40 provides guidance on another type of investment. For example, costs such as a sales commission that is only paid if a specified contract is obtained are an incremental cost. Consolidated Statements of Income; Consolidated Statements of Comprehensive Income; Consolidated Balance Sheets Much of the attention for FASB’s new revenue recognition standard for contracts with customers, ASC 606, has focused on the revenue side. ASC 340-40 removes this requirement—the amortization schedule for deferred costs does not have to match the revenue recognition pattern of nonrefundable upfront fees. ASC 340-30 provides guidance on how to apply the deposit method of accounting when it is required for insurance and reinsurance contracts that do not transfer risk. FASB Response to COVID-19 The FASB is here to help. Page 4 Watson Financial Services Accounting for Sales Compensation becomes even more challenging under ASC 606 / IFRS 15 Accounting for Sales Compensation: The incremental cost of obtaining a contract As part of the ASC … contracts within the scope of FASB ASC 944, such as investment contracts, life and health insurance, property and liability insurance, title insurance and mortgage guarantee insurance, are excluded from the scope of FASB ASC 606. l'adoption du FASB ASC 85, nous avons comptabilisé [...] un contrat de contrepartie éventuelle d'une juste valeur de 5 M$ à la [...] date d'acquisition liée à l'opération relative à CIT. Advanced Prep: None. ASC 340-10, Overall, which provides guidance on certain deferred costs and prepaid expenses. ASC 340-40 requires entities to capitalize the incremental costs of obtaining a contract with a customer if the costs are expected to be recovered. Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions Feature Pane - Post-Implementation Review (PIR) - More Link . Online Library Fasb Asc 350 40 Fasb Asc 350 40 Getting the books fasb asc 350 40 now is not type of inspiring means. The guide also discusses the capitalization of costs, such as construction and development costs and software costs, as well as the subsequent accounting for PP&E, including impairments, depreciation and amortization, and asset … Finance leases are substantially the same as capital leases under ASC 840. The full text of ASC 340 can be found in the FASB Accounting Standards Codification (link ... Navigate guidance ASC 606 and ASC 340-40 with new guide ... Background: In April 2015, the FASB issued ASU 2015-05, 1 which clarifies the circumstances under which a customer in a CCA would account for the arrangement as a license of internal-use software under ASC 350-40. This publication was created for general information purposes, and does not constitute professional advice on facts and circumstances specific to any person or entity. You could not lonely going when ebook growth or library or borrowing from your associates to admission them. Refer to Appendix A of the publication for a summary of the updates. Since then, the Board has issued a number of additional ASUs to amend and clarify the guidance in ASC 606, ASC 610-20, and ASC 340-40. The Property, plant, equipment and other assets guide discusses the accounting for acquisition transactions determined to be asset acquisitions under US GAAP. ASC Topic 606 (new revenue standard) Related ASC Subtopic 340-10 amendments; Company that incurs pre-production costs in long-term supply arrangements; Relevant dates. U.S. GAAP Codification of Accounting Standards Codification Topics at the 900 Level : Accounting Standards Codification, ASC, Overview ASC 606 and ASC 340-40 . FASB tentative Board decisions. 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