KPMG reports on ASU 2017-05, which clarifies the guidance in ASC 610-20 on accounting for derecognition of a nonfinancial asset. The ASU also defines in-substance nonfinancial assets and includes guidance on partial sales of nonfinancial assets.
Mandatory effective dates and early adoption provisions:
For public business 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.
For public business 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.
An entity is required to apply the amendments in this ASU at the same time that it applies the new revenue recognition standard. However, the earliest an entity may apply this ASU or the new revenue recognition standard is for annual and interim periods beginning after December 15, 2016.
* (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; and (3) employee benefit plans that file financial statements with the SEC.
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