News & Insights
Mind the GAAP Issues Joint Comment Letter on the FASB’s Proposed Practical Expedient for Nonpublic Franchisors
Mind the GAAP and Wipfli have responded to the FASB’s proposal to introduce a revenue recognition practical expedient for nonpublic franchisors. While we generally favor efforts to simplify existing accounting guidelines, we do not support moving forward with this specific project.
The firms support the Board’s decision to revisit and update the definitions of certain elements of financial statements to reflect recent changes in practices and standards. However, we do not back the removal of (a) the word “control” from the definition of an asset or (b) the concept of “the entity’s ongoing major or central operations” from the definition of revenues.
Thompson Reuters and Checkpoint recently published an article on the current accounting requirements for partial lease terminations. Scott Ehrlich, President of Mind the GAAP, was interviewed for the article.
In a recent article by the Thompson Reuters news agency, Scott Ehrlich, President of Mind the GAAP, shared his thoughts on whether the relief provided to depository institutions in the CARES Act may be extended to other organizations.
Mind the GAAP and Wipfli recently responded to the FASB’s proposals on simplifying the accounting for debt and equity financings. The firms generally supported the FASB’s recommendations, but requested that the FASB reconsider one of its proposals and to expand the scope of the project to address stock-settled debt.
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.
The Intersection of ASC 606 and ASC 805: Recognition and Measurement of Assumed Contract Liabilities in a Business Combination
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.