KPMG reports that the EITF discussed accounting for certain equity method investments and licensing contract modifications. It reached a final consensus on the accounting for certain equity method investments which is subject to ratification by the FASB.
Final consensus: Clarification of interactions between ASC 321, ASC 323 and ASC 815
Effective dates for final consensus | Public business entities | All other entities |
---|---|---|
Annual and interim periods in fiscal years beginning after | Dec. 15, 2020 | Dec. 15, 2021 |
Early adoption permitted | Yes | Yes |
Contract modifications of licenses of intellectual property
The EITF final consensus clarifies the interactions between ASC 321, ASC 323 and ASC 815:
The EITF discussed accounting for contract modifications of licenses of intellectual property. No decisions were made and the EITF asked the FASB staff to perform additional outreach about potential accounting alternatives to address the diversity in practice.
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