CPACPA Exam Changes

FASB Issued Accounting Standards Update (ASU) 2016-20


On December 27, 2016, the FASB issued Accounting Standards Update (ASU) 2016-20 to make various amendments to the new revenue recognition standard, going into effect for years beginning after December 15, 2017 for public entities and one year later for nonpublic entities. (ASU) 2016-20: Technical Corrections and Improvements to Topic 606, Revenue From Contracts with Customers, addresses loan guarantee fees, impairment testing of contract costs, provisions for losses on construction-type and production-type contracts, and various disclosures.

When does (ASU) 2016-20 become testable on the CPA Exam? 

With an issue date of December 2016 and an earliest effective date of December 2017, this pronouncement becomes testable on the CPA Exam starting January 2018.