Academic journal article Journal of Accountancy

Highlights

Academic journal article Journal of Accountancy

Highlights

Article excerpt

SEC EXTENDS TIME FOR SAB 101 COMPLIANCE

In June, the SEC issued Staff Accounting Bulletin (SAB) no. 101B, which allows companies registered with the commission to wait till the fourth quarter of fiscal years beginning after December 15, 1999, to implement SAB no. 101.

SAB no. 101, which had been issued in December, provides guidance on the recognition, presentation and disclosure of revenue in financial statements filed with the commission. The extension gives registrants additional time--up to nine months for stone--to assess the impact of SAB no. 101 on their financial statements. An earlier SEC bulletin, SAB no. 101A, had already granted a three-month extension (see Highlights, May00, JofA, page 6.)

Responding to requests for clarification on revenue recognition and the implementation of SAB no. 101, the SEC staff is developing a Frequently Asked Questions (FAQ) document.

The SEC has also reminded registrants and their auditors of disclosure obligations discussed in SAB Topic 11M, Disclosure of the Impact that Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Adopted in a Future Period, issued several years ago and in the AICPA's Professional Standards, AU 9410.3, The Impact on an Auditor's Report of an FASB Statement Prior to the Statement's Effective Date. According to the commission, the disclosure should assist investors in analyzing the effect that implementing the new guidance will have on a company's financial statements.

SAB no. 101B is available on the SEC Web site at www.sec.gov.

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