Summary of CFMA Response Letter to FASB on March 13
CFMA’s Emerging Issues Committee undertook a broad, deliberative process to formulate comments on the Proposed Accounting Standards Update, Revenue Recognition (Topic 605): Revenue from Contracts with Customers, seeking input within and outside of our membership. To that end, CFMA invited the National Association of Surety Bond Producers (NASBP), a national trade organization of firms employing licensed surety bond producers, to establish a liaison with our committee formulating comments and share the perspectives of bond producers who comprise a significant set of consumers and end users of construction company financial data. NASBP perspectives and input are represented within CFMA’s written comments.
CFMA’s response letter comprehensively addresses the following specific topics and includes comments on the perceived strengths and weaknesses of those topics within the Exposure Draft:
- Contract Modifications
- Satisfaction of Performance Obligations
- Output Methods
- Input Methods
- Reasonable Measures of Progress
- Time Value of Money
- Constraining the Cumulative Amount of Revenue Recognized
- Onerous Performance Obligations
- Contract Costs
- Effective Date and Transition
The Exposure Draft also posed a number of open-ended questions to which CFMA responded accordingly.
Click here to read the full CFMA response letter.
Most importantly, CFMA’s Emerging Issues Committee wishes to extend its gratitude to the following volunteer members who graciously contributed their time, knowledge, and expertise to address this issue: