Fas 60 contracts
To address those issues, the Board decided to add a project to its technical agenda to improve Topic 606, Revenue from Contracts with Customers, by reducing: 1. The potential for diversity in practice at initial application 2. The cost and complexity of applying Topic 606 both at transition and on an ongoing basis. Revenue from Contracts with Customers (FASB ASC 606) ASC 606 is a principles-based framework for recognizing revenue and replaces Generally Accepted Accounting Principles (GAAP) revenue recognition requirements and accounting guidance that homeowner associations have followed for many years. The intent of ASC 606 is to create consistency in and comparability of financial statements contracts will generate profits in the early reporting years followed by losses in later reporting years. The requirement originally was described in FAS 60 in paragraph 37 and is now found under the FASB ASC 944-60-25-9, Financial Services—Insurance—Premium Deficiency and Loss Recognition—Long-Duration Contracts. The accounting guidance, in its entirety, states: