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VSCPA A&A Committee Comments on FASB’s ASU on Prepaid Stored-Value Cards

 

The VSCPA Accounting & Auditing Advisory Committee (A&A) has submitted a comment letter in response to the Financial Accounting Standards Board’s (FASB) proposed Accounting Standard Update, “Liabilities — Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards.”

The committee generally supports FASB’s updates as laid out in the exposure draft, including the breakage model and required disclosures. The committee also voiced its support for the early adoption provision, stating that the time needed to implement the proposed amendments would not be significant.

No votes have been submitted yet.