Companies may pursue mergers and acquisitions for a variety of reasons. It also includes an updated appendix on the accounting for asset acquisitions, which is based on our updated Technical Line publication, A closer look at the accounting for asset … We use cookies to personalize content and to provide you with an improved user experience. Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) No. 410-20 Asset Retirement Obligations. is paragraph 45-3 of ASC Subtopic 220-10; TQA 1300.15. is paragraph 15 of Technical Questions & Answers 1300, issued by the American Institute of Certified Public Accountants. ASC 610 Other Income. included in ASC 605-40, Revenue Recognition: Gains and Losses. The term authoritative includes all level AD GAAP that has been issued by a standard setter. Publications Financial Reporting Developments. The ASU also defines in-substance nonfinancial assets and includes guidance on partial sales of nonfinancial assets. The new standard requires that collection of the transaction price for providing services or goods to a customer must be probable. ©2001–2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG … See Appendix C of the publication for a summary of the updates. I… * Get a 10% discount on KPMG … 1.3 Scope of ASC 360-10 — Impairment or Disposal of Long-Lived Assets 5 1.4 Scope of ASC 205-20 — Presenting Discontinued Operations 9 Chapter 2 — Long-Lived Assets Classified as Held and Used 11 2.1 Overview 11 2.2 When to Test a Long-Lived Asset (Asset Group) for Recoverability 12 166), which removed the concept of a qualifying special-purpose entity. Under ASC 610-20, transfers can include sales and other circumstances that result in the derecognition of nonfinancial assets or in substance nonfinancial assets that do not constitute a business or a not-for-New Developments Summary profit activity. Digital Self-Studies. Revenue from Contracts with Customers (Topic 606) No. When an entity adopts ASC 606, Revenue from Contracts with Customers, this same guidance will be moved to ASC 610-30, Other Income: Gains and Losses on Involuntary Conversions. Mandatory effective dates and early adoption provisions: For public business entities the effective date for annual periods is the fiscal years beginning after Dec. 15, 2017. SEC staff comments . 5. Sharing our expertise and perspective. Although this guidance has not changed significantly for decades, the application of the existing framework remains challenging at times because a significant amount of judgment may be required, including the … ASC 860-40 was superseded by ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets (originally issued as FASB Statement No. Financial Reporting Developments - Gains and losses from the derecognition of nonfinancial assets (ASC 610-20) 30 Sep 2020 PDF. Some of the notable standard- setting developments that occurred since the previous edition were (1) the issuance of new guidance on the consolidation In a situation where property is destroyed, an entity might take one or more of the following actions: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. ASC 410-10 simply provides information about the differences between the other two Subtopics on asset retirement obligations and environmental obligations. Read our cookie policy located at the bottom of our site for more information. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The content in the Codification is organized by Topic, … 43 ASC 715 Compensation—Retirement Benefits 755. 2016-02, Leases, in February 2016. Receive timely updates on accounting and financial reporting topics from KPMG. Work-Life-Balance. ASC 610-20 uses the same principles that are in the new revenue standard. Companies that sell real estate and related services to customers and noncustomers, Applying the 5-step revenue recognition model, Updated interpretations based on our experience with companies implementing ASC 606 and ASC 610-20, Standard-setting developments involving the interaction with the new leases standard, Step 2: Identify the performance obligations. Contents Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement..... 2 Transition, Effective Date, and Disclosures..... 3 ©2001–2015 KPMG LLP, a … ASC Reference: Reference to IFRS difference Voluntary or special termination benefits: 710 or 712 2 Contractual termination benefits, paid under an ongoing termination benefit arrangement: 712 3, 4 One-time termination benefits paid in connection with an exit activity, including one-time additional benefits that enhance benefits to an existing plan: 420 5, 6, 8 Contractual benefits … The most comprehensive guide to FASB Codifications, updated with the latest pronouncements Wiley GAAP 2020 is the essential resource for US GAAP implementation. Current quarter financial reporting matters . Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Accounting for derecognition of nonfinancial assets, Company that sells nonfinancial assets (e.g. KPMG LINK 360 is our global process management and collaboration tool that can help you manage your tax and statutory accounting compliance obligations worldwide. Our FRD publication on business combinations has been updated to reflect recent standard-setting activity and to further clarify and enhance our interpretive guidance in several areas. Preface PwC 3 Preface This publication is designed to alert companies, investors, and other capital market participants to the major differences between IFRS, US GAAP, Ind AS and Indian GAAP as they exist today, and to the timing and scope of accounting changes that the standard setting agendas of the International Accounting scope of Subtopic 610-20 because the term in substance nonfinancial asset was not defined. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. This includes partial … Sales of a subsidiary that only has nonfinancial assets and/or in-substance nonfinancial assets and is not a business are scoped into ASC 610-20. Ja Nein. ASC 710 applies to all entities, but as listed in 710-10-15-5, it does not apply to the following transactions: Benefits … KPMG does not provide legal advice. ASC 606 breaks the contract process into the following 5 steps: Identify the … The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. The FASB Accounting Standards Codification simplifies user access to all authoritative U.S. generally accepted accounting principles (GAAP) by providing all the authoritative literature related to a particular Topic in one place. KPMG reports on ASU 2017-05, which clarifies the guidance in ASC 610-20 on accounting for derecognition of a nonfinancial asset. 48 ASC … Apply ASC 610-20 (U.S. GAAP) / IAS 16, IAS 38, or IAS 40 (IFRS), which requires entities to apply certain aspects of the new standard to determine: if an enforceable contract exists, if control of the asset has transferred to the buyer, and the amount of gain or loss to recognize when the asset is Each distinct good or service should be accounted for separately. Overview. Vergütung/Leistungen. Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) No. The ASC 606 requirement for combining contracts is consistent with ASC 605, thus companies should reach similar conclusions regarding combining contracts under both topics. Our FRD publication on gains and losses from the derecognition of nonfinancial assets (ASC 610-20) has been … ASU2017-05 Clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets Strategic buyers often seek to expand an existing revenue stream, obtain a new revenue stream, or extend control of their supply chain. The ASU also defines in-substance nonfinancial assets and includes guidance on partial sales of nonfinancial assets. For example, if the nonfinancial … Melden. By continuing to browse this site, you consent to the use of cookies. Link kopieren . Some contracts may not apply under ASC 606 nor ASC 610-20. The term authoritative includes all level AD GAAP that has been issued by a standard setter. Overall I can say that I learned very much in a short amount of time and can recommend KPMG to everyone. 2014-08 April 2014 Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity An Amendment of the FASB Accounting Standards Codification® firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. The ASU also defines in-substance nonfinancial assets Teilen. War diese Bewertung hilfreich? 2 FASB ASC Topic 810, Consolidation; and FASB ASC Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets, both available at www.fasb.org. Chris Eibl Dave Yankee Deloitte Tax LLP Involuntary Conversions and Casualty Losses September 30, 2014 2 FASB ASC paragraphs 985-605-55-121 to 55-125, available at www.fasb.org. • Industry-specific guidance for certain real estate transactions (including those involving a monetary and nonmonetary component) and exchanges of software was removed from ASC 845. The new standard provides investors with incremental disclosure such as revenue backlog, and … © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Comments Due: Debt (Topic 470) Simplifying the Classification of Debt in a Classified Balance Sheet (Current versus Noncurrent) Revision of Exposure Draft No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG reports on ASU 2017-05, which clarifies the guidance in ASC 610-20 on accounting for derecognition of a nonfinancial asset. About this publication Purpose The purpose of this publication is to assist you in understanding the requirements of FASB ASC Topic 606 Revenue from Contracts with Customers and Subtopic 610‑20 Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets, as they apply to real estate transactions. For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance. Stakeholders also noted that other aspects of the scope of Subtopic 610-20 were confusing and complex. * (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; and (3) employee benefit plans that file financial statements with the SEC. 45 ASC 720 Other Expenses 833 . All rights reserved. KPMG does not provide legal advice. ASC 610 Other Income. ASC 270, Interim Reporting; The company should follow the same presentation as in its annual financial statements – presenting the components of profit or loss and OCI in either a single statement or two separate statements. An entity is required to apply the amendments in this ASU at the same time that it applies the new revenue recognition standard. In developing ASC 606, FASB and IASB wanted to provide a framework to drive consistency in financial reporting, improve comparative analysis and reporting, and simplify the preparation of financial statements through a 5 Step Model for Revenue Recognition. Scope and Scope Exceptions. 39 ASC 610 Other Income 739. of Professional Practice, KPMG US. … Examples of transfers within the scope of ASC 610-20 include losing control of nonfinancial assets or in … An implicit concession may be supported by the vendor’s history of providing a discount to the customer. Our FRD publication on consolidation has been updated to reflect the issuance of ASUs and other standard-setting developments and to provide enhancements to our interpretive guidance. Sales of nonfinancial assets and in-substance nonfinancial assets scoped in ASC 610-20 are accounted for using the contract existence, separation, measurement and derecognition guidance in ASC 606. ASC Topic 740 defines taxable income as “the excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority.” Thus, inherent in ASC Topic 740 is the concept that taxes on income are determined after deducting allowable expenses and losses from gross revenues and gains. If the option provides a material right that the customer would have not received without … The KPMG national ASC 740 Center of Excellence (COE) offers a variety of integrated processes and technology solutions that can assist tax departments with their most complex challenges and needs through the deployment of highly technical experienced tax professionals, resident in KPMG offices throughout the US. The five criteria found in ASC 606-10-25-1 must all be met for a contract to exist. Although outside the scope of ASC 606, the sale of non-operating assets still requires the use of the new standard, because ASC 610-20-40-1(a) requires banks to apply the guidance found within ASC 606-10-25-1 through -8 in determining whether a contract exists. 3 FASB ASC Subtopic 360-20, Property, Plant, and Equipment – Real Estate Sales; and FASB ASC Topic 845, Nonmonetary Transactions, both available at www.fasb.org. ASC 606 and 610-20 real estate guidance. Sales of a subsidiary that only has nonfinancial assets and/or in-substance nonfinancial assets and is not a business are scoped into ASC 610-20. ASC 710-10, Overall, which is divided into two subsections: General, which provides guidance on compensated absences, deferred compensation, and lump-sum payments under union contract; Deferred Compensation—Rabbi Trusts. * Apply coupon code COMBO200 at checkout to receive $200 off the combined purchase price. The SEC staff continues to focus on non-GAAP financial measures and internal control over financial reporting. Individuals who register for any 2 KPMG Executive Education virtual seminars can save! See KPMG’s IFRS Perspectives article Income statement presentation: IFRS compared to US GAAP for more information. KPMG answers frequently asked questions on applying the FASB’s revenue and other income recognition standards in the real estate industry. 41 ASC 710 Compensation—General 747. Current Developments: US – March 2017 | 1 . “Probable” means that the future event is likely to occur. © 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. References to SEC Regulations are also indicated – e.g. ASC 606 and 610-20 real estate guidance. our perspective on the requirements. Deloitte provides insights concerning legacy US GAAP revenue recognition standards and new revenue recognition criteria—ASC 606, ASC 610-20, and ASC 340-40. Subject AccountingLink. Covering all codifications by the Financial Accounting Standards Board (FASB) - including the latest updates - this book provides clear explanations and practical examples for real-world … intangible assets, lands, buildings, or materials and supplies) to noncustomers, Company that sells nonfinancial assets and financial assets (e.g. A virtual newsstand of US technical accounting guidance and financial reporting thought leadership produced by the EY US Professional Practice Group. understanding the requirements of FASB ASC Topic 842, Leases, which was created by the issuance of FASB Accounting Standards Update No. cash, receivables) when the value is concentrated in the nonfinancial assets, Company that sells partial ownership interests in nonfinancial assets, Does not apply to sales to customers or sales of businesses, ASU clarifies that the guidance in ASC 610-20 on accounting for derecognition of a nonfinancial asset and an in-substance nonfinancial asset applies only when the asset (or asset group) does not meet the definition of a business and is not a not-for-profit activity, Provides guidance for partial sales of nonfinancial assets, Scope and summary of the new standard on other income, Flowcharts that illustrate the scope and application of the new standard. KPMG LINK 360 – visibility and control of global compliance. 44 ASC 718 Compensation— Stock Compensation 795. Reg S-X Rule 10-01(b)(6). It aligns tax and finance with the rest of the organization to deliver a 360-degree view of your company’s global compliance position, … Read more. Financial buyers often aim to … For all other entites the effective date for interim periods is the fiscal years beginning after Dec. 15, 2019. The FASB Accounting Standards Codification simplifies user access to all authoritative U.S. generally accepted accounting principles (GAAP) by providing all the authoritative literature related to a particular Topic in one place. All other entites the effective date for interim periods is the fiscal years beginning after Dec.,! Virtual seminars can save that other aspects of the KPMG network of independent member firms affiliated with KPMG International (... And to provide you with an improved user experience be met for contract... 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