June 23, 2018

Accounting for Stuff With Tim Gearty: Separation of Performance Obligations

Tim Gearty new revenue recognition rules

Back with round 2 of Tim Gearty’s overview of the new revenue recognition rules. Go catch up on Part I, if you’re late to the party. (But don’t worry, you’re never late to the party.)

This time Lord Gearty covers the separation of performance obligations. So pay attention, you’ll learn something.

Stay tuned for more on the new revenue recognition rules from Tim Gearty and Going Concern in the coming weeks. And subscribe to our YouTube channel to be the first to receive updates.

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Why Do the FASB and IASB Always Insist on Mission Impossible?

Can anyone explain why accounting regulators have the annoying tendency to see a HUGE problem and insist on fixing it when the logistics are seemingly impossible to overcome? It’s commendable to try and solve big problems but it seems that the geeky egos of accountants often get in the way of reality.
CFO.com has a story about the FASB and IASB’s “dream” to get accounting standards down to one model for revenue recognition. ONE!
According to the article, the FASB’s revenue recognition rules are currently spread among 100 standards, so obviously there’s room for improvement but shrinking all that down to one model? Talk about herding cats.
We’re not hating on the standard setters (well, let’s face it, maybe a little) for considering this task but these dweebs can’t even get on the same page re: convergence timing so we’ll be taking the overs on the number of years when this single model pipe dream actually gets off the ground.

Revenue Recognition: Will a Single Model Fly?
[CFO.com]

Dear Becker,

olinto_cpa.jpgA reader was kind enough to share with us a letter they sent to Becker after the software expired and was rendered utterly useless.
Here’s an excerpt:
“The Becker lectures sang to me like a siren’s song. Much like poor Odysseus, I screamed for more. Yet, unlike Odysseus, there was no one there to keep me safe. Tim Gearty became the man that I yearned to be. He is smart, funny, humorous, debonair, more dashing than James Bond and full of more knowledge than Ken Jennings. His style rivals that of GQ’s Man of the Month.”
Check out more love for Tim Gearty and Peter Olinto in the whole letter, after the jump

Becker.doc