The FASB has issued Proposed Accounting Standards Update EITF 2015-15B, Recognition of Breakage for Certain Prepaid Stored-Value Cards. If finalized, it would change the way that retail merchants who sell gift cards for redemption at other stores account for “breakage”…
Rabid conservative ideologues believe that everything transacted in a free-market, i.e., unfettered by government involvement or regulation, is by definition a good thing. I presume this is why Newt Gingrich acted like he was between a rock and a hard place…
A couple of weeks ago, I concocted a cautionary tale for undergraduate students out of Proposed ASU No. EITF100F, which dealt with the accounting for a health insurer's legal costs arising from malpractice cases. If you are looking for a…
If you are teaching an accounting class, here's a simple and timely (I'll explain why, later) assignment for your students: Facts: Company XYZ is a manufacturer that is being sued by a person claiming that she was injured from using…
In researching an IFRS question recently, I stumbled across a whole new (for me) source of stealth guidance put out by the IASB's International Financial Reporting Interpretations Committee (IFRIC). I am referring to official descriptions of issues that were presented to IFRIC,…
EITF Consensus 07-03, Accounting for Nonrefundable Advance Payments for Goods or Services to Be Used in Future Research and Development Activities, is very straightforward and basic; so much so that it might require less than one class period of Accounting…