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Accounting Standards Updates

Standards Update: 11/26/18

Posted 3:30 PM by
The Financial Accounting Standards Board (FASB) regularly issues Accounting Standards Updates (ASUs) to make changes to the FASB Codification, the primary source of Accounting Principles Generally Accepted in the United States (GAAP).
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Miller and Schuh to Present Lease Accounting Update at Iowa Motor Truck Association Member Webinar

Posted 4:00 PM by
Jason Miller and Shane Schuh with KSM’s Transportation Services Group will present “Lease Accounting Update and its Impact on the Transportation Industry” to members of the Iowa Motor Truck Association on Dec. 13. In this webinar conversation, Miller and Schuh will detail key changes brought about by the Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2016-02, Leases (Topic 842), which goes into effect Dec. 15, 2018 and is the first comprehensive overhaul in lease accounting in approximately 40 years.
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FASB Clarifies Scope and Accounting Guidance for Contributions Received and Contributions Made

Posted 8:30 PM by
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (ASU 2018-08) that clarifies and improves the scope and accounting guidance around contributions of cash and other assets received and made by not-for-profit organizations (NFPs) and business entities. While ASU 2018-08 also applies to business entities that make or receive contributions, it will primarily impact NFPs.
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How the New Revenue Recognition Standard Will Impact the Transportation Industry

Posted 5:04 PM by
Under current revenue recognition standards, transportation companies generally recognize revenue upon delivery of freight to the customer. Related transportation and delivery expenses directly associated with the shipments are recorded once the revenue is recognized. This revenue recognition methodology will change with the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 is effective for public companies for periods beginning after Dec. 15, 2017 and for non-public companies for periods beginning after Dec. 15, 2018. Early adoption is permitted.
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Shifting Lanes: How Updated Lease Accounting Standards Are Affecting Dealerships

Posted 7:26 PM by
Most auto dealers participate in leasing in some way, whether they are leasing a building or equipment, operating as a lease here – pay here (LHPH), or are lessors of real estate. That means nearly all auto dealers will be impacted by the Financial Accounting Standards Board’s (FASB) update to the accounting standard for leases under U.S. generally accepted accounting principles (GAAP). The updated standard, which will take effect for private companies for fiscal years beginning after Dec. 15, 2019, will affect both lessors and lessees in different ways.
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Dissecting the New Revenue Recognition Guidance: Step 5 of the Five-Step Framework

Posted 2:22 PM by
Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, as amended, creates a five-step framework for entities to determine when and how much revenue should be recognized. The first article in the ‘Dissecting the New Revenue Recognition Guidance’ series discussed step 1: identifying the contract(s) with a customer. The second article in the series explained step 2: identifying performance obligations in the contract. The third article discussed step 3: determining the transaction price. The fourth article discussed step 4: allocating the transaction price to the performance obligations in the contract. This article focuses on step 5: recognizing revenue when (or as) the entity satisfies performance obligations.
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Dissecting the New Revenue Recognition Guidance: Step 4 of the Five-Step Framework

Posted 12:50 PM by
Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, as amended, creates a five-step framework for entities to determine when and how much revenue should be recognized. The first article in the ‘Dissecting the New Revenue Recognition Guidance’ series discussed step 1: identifying the contract(s) with a customer. The second article in the series explained step 2: identifying performance obligations in the contract. The third article discussed step 3: determining the transaction price. This article focuses on step 4: allocating the transaction price to the performance obligations in the contract.
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Dissecting the New Revenue Recognition Guidance: Step 3 of the Five-Step Framework

Posted 2:00 PM by
Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, as amended, creates a five-step framework for entities to determine when and how much revenue should be recognized. The first article in the ‘Dissecting the New Revenue Recognition Guidance’ series discussed step 1: identifying the contract(s) with a customer. The second article in the series explained step 2: identifying performance obligations in the contract. This article focuses on step 3: determining the transaction price.
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Principal Versus Agent: Which Are You?

Posted 5:00 PM by
The Financial Accounting Standards Board (FASB) has implemented one of the most extensive changes to revenue recognition standards in its history with the issuance of Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. As entities address and apply the standard’s provisions, one key element they must determine is how to report their revenues. Entities can report revenue at the gross amount of consideration they expect to receive (with associated fees presented as a cost) or on a net basis, which is the gross amount of consideration less any fee or commission directly related to the obligations.
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Dissecting the New Revenue Recognition Guidance: Step 2 of the Five-Step Framework

Posted 2:00 PM by
Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, as amended, creates a five-step framework for entities to determine when and how much revenue should be recognized. The first article in the ‘Dissecting the New Revenue Recognition Guidance’ series discusses step 1, identifying the contract(s) with customers. This article focuses on step 2, identifying the performance obligations in the contract.
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