With the COVID-19 pandemic bringing unexpected challenges over the course of the last few months, FASB has officially issued Accounting Standards Update (ASU) 2020-05 providing privately-held entities and private nonprofit organizations with a one-year deferral of the ASC 606, Revenue from Contracts with Customers, effective dates, and ASC 842, Leases. The newly passed ASU 2020-05 will postpone [...]
Background The Financial Accounting Standards Board (FASB) approved a new revenue recognition standard, Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606” or the “revenue recognition standard”). The revenue recognition standard applies to most organizations and businesses, including condominium and homeowner associations, because an Association’s relationship with its members generally meets the [...]
The enactment of the Tax Cuts and Jobs Act (TCJA) in December of 2017 led to one of the more chaotic tax filing seasons in recent memory. The new law included several provisions that affected bonus depreciation treatment and calculations, and some taxpayers may have filed their returns without fully considering the different options that [...]
Any new accounting standard can throw us for a loop, but the new revenue recognition standard has made an especially strong impact. Not all revenue-generating activities fall under the purview of the new standard, but the changes are far-reaching and will affect a multitude of revenue streams in almost all industries. Public organizations should have [...]
Additional Articles in the Series Step 1, Identifying Contracts Step 3, Determining Transaction Price Step 4, Allocating the Transaction Price Step 5, Recognizing Revenue Step 2 of Revenue Recognition: Identify Performance Obligations Identify Customer Contracts Identify Performance Obligations Determine Transaction Price Allocate Transaction Price Recognize Contract Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Identify Customer Contracts Identify [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 5, Determining Transaction Price Step 4 of Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Solving the Revenue Recognition Maze: Step 5, Recognizing Revenue Step 3 of Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Solving the Revenue Recognition Maze: Step 5, Recognizing Revenue Step 1 of [...]
