FASB | ASU: Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)

TXCPA’s Professional Standards Committee supports the proposed ASU clarifying derivative accounting and share-based payments, aiming to address diversity in practice and improve consistency for contracts tied to operations or customer consideration.

The purpose of the proposed ASU is to address stakeholders’ concerns about the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract, and the diversity in accounting for a share-based payment from a customer that is consideration for the transfer of goods or services.

Read the full comment letter here. View TXCPA PSC comment letter here.

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