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Accounting & Audit Alert February 2017


RubinBrown's Accounting & Auditing Alert is published monthly to inform our clients and contacts about relevant technical accounting and audit-related information.


FASB Clarifies The Definition Of A Business

The FASB has issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, with the objective of adding guidance to help entities evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.


FASB Issues Exposure Draft On The Classification Of Debt In A Classified Balance Sheet

The FASB has issued an Exposure Draft titled, Debt (Topic 470): Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent). The amendments in this proposal would replace the current, fact-specific guidance with an overarching, cohesive principle.


FASB Proposes Changes To Inventory Disclosures

The FASB has issued an Exposure Draft titled, Disclosure Framework – Changes to the Disclosure Requirements for Inventory (Topic 330): Inventory. As part of the disclosure framework project, the FASB is proposing changes to the disclosure requirements for inventory in order to enhance the effectiveness of the notes to financial statements.


FASB Issues Technical Corrections And Improvements

The FASB has issued ASU 2016-19, Technical Corrections and Improvements. The FASB agenda contains a standing project which focuses on addressing feedback received from stakeholders on the Accounting Standards Codification. Technical Corrections are provided to correct differences between the original guidance and the Accounting Standards Codification, provide guidance clarification and correct references, simplify and provide minor improvements.


FASB Provides Technical Corrections And Improvements To Topic 606, Revenue From Contracts With Customers

In 2014, the FASB issued a long awaited new standard on the recognition of revenue from contracts with customers (ASU 2014-09, Revenue from Contracts with Customers). The FASB has continuously worked to improve the released but not yet effective standard by evaluating technical corrections and improvements.


Readers should not act upon information presented without individual professional consultation.