It is critical to understand the complexities of the specialized accounting and regulatory requirements needed for the broker-dealer industry. This comprehensive guide has been designed to be beneficial for a wide range of professionals within the broker-dealer industry.
How should brokers and dealers in securities implement the new credit loss standard, FASB ASC 326, Credit Losses? The 2021 edition of the guide addresses that question by offering a high-level discussion of the following:
This edition of the guide also addresses the scope and application of FASB ASC 842, Leases to common broker-dealer obligations, including identification of no-action information concerning the treatment of operating leases under Rule 15c3-1 related to computation of net capital. An example disclosure note is also included.
In addition, this guide offers a new example disclosure note for credit losses, which has been added to the guide's illustrative financial statements and footnote disclosures. This edition also contains revenue recognition implementation issues for brokers and dealers in securities applying FASB ASC 606 and related interpretations from the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG). Specifically, the following revenue streams are addressed:
The following other related topics are also addressed:
Other updates to this edition are to conform the content to current accounting standards and regulatory requirements.
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