On December 17, 2010, the FASB took the uncommon step of issuing for comment a revised ED, Presentation and Disclosure of Net Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts, which reflects the
EITF's final consensus.
The previous
EITF 99-20 model was more stringent than the Statement no.
This fact was seemingly acknowledged by the
EITF in Issue No.
The latter condition often presents the more troublesome accounting problem and is the focus of the two measurement issues addressed in the
EITF consensus: the effects of potential recoveries and the applicability of discounting.
The
EITF also concluded that, in order to satisfy the first or second criterion, the condition of the property after the costs are incurred must be improved as compared with the condition of the property when originally constructed or, if later, acquired.(17)
EITF also addressed the treatment of reporting units with a zero or negative carrying amount in Step 1.
Many of the FASB's Accounting Standards Updates (ASUs) are the result of recommendations made by the
EITF. In this month's column, I'll summarize the three most recent ASUs, each of which is an example of the FASB implementing an
EITF recommendation for changing the wording of GAAP in order to reduce diversity in practice.
Finally, the researcher narrowed the applicable sources to Lighthouse's revenue recognition issue to the following: SAB 101,
EITF 00-21, ARB 43 and APB Opinion 10.
Some guidance a CPA might want to review in this instance includes SAB 101 (Delivery & Performance: Question 5); SAB 104 (Inconsequential or Perfunctory Performance Obligations: Question 1); and
EITF 00-21 Revenue Arrangements with Multiple Deliverables.
03-10, or
EITF 03-10, which affects the way the company accounts for vendor coupon and rebate programs.
The Financial Accounting Standards Board's (FASB's) Emerging Issues Task Force (
EITF) recently released Issue No.
Finally, Spivey detailed the work of FASB's Emerging Issues Task Force (
EITF) on updating disclosures for employee benefit plans.