Financial Reporting Manual updated
FINANCIAL REPORTING INSIGHTS |
The SEC’s Division of Corporation Finance Financial Reporting Manual, which is intended only to provide general guidance to Division staff, contains helpful information to auditors and preparers of issuer financial statements. The manual recently was updated as follows:
- Revisions were made to update the guidance in section 2410.8 on testing significance of equity-method investments related to implementation of the income test for the effect of discontinued operations or retrospectively applied changes in accounting principles.
- Revisions were made to conform certain guidance (sections 1310.2a, 10110.5, 10220.1, 10220.4, 10220.5b) to Fixing America’s Surface Transportation (FAST) Act. Although the primary provisions of this Act relate to funding for transportation improvements, the Act also includes a number of changes to the federal securities laws. For more information regarding the FAST Act, see:
- Guidance was added in Topic 11 regarding implementation of Financial Accounting Standards Board Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), and International Financial Reporting Standard 15, Revenue from Contracts with Customers. For additional information about ASU 2014-09, refer to our white paper, Revenue recognition: A whole new world.