Opening A/R balance disclosure: 2nd year FASB ASC 606 disclosure trap

We recently wrote about initial matters for further consideration (MFCs) in peer review citing FASB Accounting Standards Codification (FASB ASC) 606, Revenue from Contracts with Customers. In that report, we discussed FASB ASC 606 disclosure omissions. In particular, we discussed the disclosure requirement under FASB ASC 606-10-50-11 which requires private companies to disclose the opening and closing balances of receivables, contract assets, and contract liabilities from contracts with customers, if not otherwise separately presented or disclosed. We continue to receive questions and comments about the new requirement to disclose the opening balance of accounts receivable. In this report, we further address some of these questions and comments.