Mind the GAAP and Wipfli recently wrote a short letter to the FASB highlighting a potential disclosure quirk affecting private companies adopting ASC 842, Leases, on a cumulative-effect basis. The firms have asked the FASB to issue a narrow scope amendment to address the issue.
Discussions at a recent IFRS Interpretations Committee highlight that international and U.S. practitioners may be interpreting new U.S. GAAP and IFRS leasing guidelines differently.
As companies, both public and private, adopt the new guidance in ASC Topic 606, Revenue from Contracts with Customers, certain unexpected practice issues have begun to emerge, including how to recognize and measure deferred revenue liabilities assumed in a business combination.
Mind the GAAP joined five other professional services firms in requesting that the FASB promulgate guidance on the accounting for warrant modifications – a transaction that has significantly increased in frequency over the past few years.
Some software companies argue that a proposed FASB rule on costs associated with moving to cloud platforms would be overly burdensome. Scott Ehrlich from Mind the GAAP shares his views in this Bloomberg article.