FASB Flash Report - November 2021

November 2021

BY

Jennifer KimmelProfessional Practice Director, Accounting

Angela NewellProfessional Practice Partner, Accounting

The FASB issued ASU 2021-08 (“Update”) to require an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with revenue recognition guidance as if the acquirer had originated the contract. That is, such acquired contracts will not be measured at fair value. The Update is effective for public companies in fiscal years starting after December 15, 2022. Early adoption is permitted.