WebJan 20, 2024 · ASU 2024-08 provides guidance for acquired revenue contracts in a business combination. Under current GAAP, prior to adoption of ASU 2024-08, if you were to acquire a company that has a liability for deferred revenue on their balance sheet, that deferred revenue may not make it to the acquirer's balance sheet. WebMar 10, 2024 · Company X invoices and receives $1.2 million in January 2024. On December 31, 2024, Company X is acquired by another entity resulting in a business …
Companies Say FASB Proposal on Acquired Revenue Earning Contracts Would ...
WebFeb 21, 2024 · Under ASU 2024-08, entities are no longer required to use ASC 805 guidance for deferred revenue, but instead, will use ASC 606 guidance. In essence, this ASU no longer requires entities to write deferred revenue (referred to as a contract liability under ASC 606) to fair value. Instead, the contract liabilities are to be accounted for as if … WebOct 29, 2024 · The FASB on October 28, 2024, issued a narrowly drawn standard that aims to stem reporting differences that have bubbled up among companies about how to account for revenue contracts acquired in a business combination. FASB member Christine Botosan dissented; new board member Fred Cannon abstained. The new standard … hai yo lyrics japanese
FASB updates Topic 805 on business combinations regarding deferred ...
WebJun 27, 2024 · Our FRD publication on business combinations has been updated to reflect the issuance of ASU 2024-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. It has also been updated to further enhance and clarify our interpretive guidance in several areas. See … WebFeb 21, 2024 · Under ASU 2024-08, entities are no longer required to use ASC 805 guidance for deferred revenue, but instead, will use ASC 606 guidance. In essence, this … WebDec 4, 2024 · ASC 805, Business Combinations, requires identifiable liabilities assumed to be measured at the acquisition-date fair value. The Company estimated the fair value of … hai yt