Issues In-Depth   |   May 2016
 

Revenue: illustrative disclosures

KPMG’s insights on revenue disclosures under ASC 606. KPMG illustrates example presentation and disclosures under the FASB’s new revenue standard.

Applicability

ASC Topic 606

  • Company that is currently assessing the impact of the new requirements of ASC Topic 606
  • Company that is at an advanced stage of its ASC Topic 606 implementation

Effective dates

Mandatory effective dates and early adoption provisions:

Annual periods:

For public business entities and certain not-for-profit entities* the effective date for annual periods is the fiscal years beginning after Dec. 15, 2017.

For all other entites the effective date for annual periods is the fiscal years beginning after Dec. 15, 2018.

Interim periods:

For public business entities and certain not-for-profit entities the effective date for interim periods is the fiscal years beginning after Dec. 15, 2017.

For all other entites the effective date for interim periods is the fiscal years beginning after Dec. 15, 2019.

Early adoption:

For public business entities and certain not-for-profit entities the effective date for early adoption is the fiscal years beginning after Dec. 15, 2016.

For all other entites the effective date for early adoption is the fiscal years beginning after Dec. 15, 2016.

Key impacts

Extensive new disclosure requirements focusing on:

  • Disaggregation of revenue from contracts with customers
  • Contract balances
  • Performance obligations
  • Significant judgments
  • Assets recognized for costs to obtain or fulfill a contract with a customer

Report contents

  • About Topic 606
  • Balance sheets
  • Statements of income and comprehensive income
  • Statement of changes in stockholders’ equity
  • Statement of cash flows
  • Retrospective application with cumulative effect of initial adoption
  • Disclosure checklist (annual and interim)

 

 

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