May 09, 2016
From the Financial Reporting Network
The FASB recently issued ASU No. 2016-11, Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting, which rescinds from the FASB Accounting Standards Codification® certain SEC paragraphs as a result of two SEC Staff Announcements at the March 3, 2016 meeting of the Emerging Issues Task Force. Specifically, the ASU rescinds:
- Certain SEC Observer comments that are codified in FASB ASC Topic 605, Revenue Recognition, and FASB ASC Topic 932, Extractive Activities—Oil and Gas, effective on adoption of FASB ASC Topic 606, Revenue from Contracts with Customers.
- SEC Staff Announcement, "Determining the Nature of a Host Contract Related to a Hybrid Instrument Issued in the Form of a Share Under Topic 815," which is codified in FASB ASC Topic 815, Derivatives and Hedging. The rescinded guidance is effective on adoption of FASB ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity.