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FASB clarifies principal versus agent guidance

FASB ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), amends the principal-agent implementation guidance in the new revenue standard by clarifying the unit of account in principal versus agent assessments and emphasizing that a principal obtains control of a good or service that it then transfers to the customer. The effective date and transition requirements for the amendments are the same as those for the new revenue guidance in ASC 606.

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