FinREC Publishes Three Revenue Standard Working Drafts
The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) has issued the following working drafts in regard to the Financial Accounting Standards Board’s revenue recognition standard, Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers:
- Proposed Implementation Issues for Revenue Recognition: Telecommunications — Disclosure and Transition. This working draft concerns the required disclosures under Accounting Standards Codification (“ASC”) 606, Revenue From Contracts With Customers. The draft guidance notes that a disclosure presented due to another accounting standard does not need to be repeated to fulfill ASC 606. The draft also details several disclosure requirements under ASC 606-10-50.
- Proposed Implementation Issues for Revenue Recognition: Asset Management — Recognition of Contingent Deferred Sales Charges. This working draft helps asset managers when identifying a back-end load from a mutual fund. Also included in the draft is a summary of the recognition and measurement requirements under ASC 606, and how they impact asset managers.
- Proposed Implementation Issues for Revenue Recognition: Gaming — Gaming Operator’s Accounting for Base Progressive and Incremental Progressive Jackpot Amounts. This working draft discusses the timing of accruing a jackpot’s liability. Per FinREC, an accrual must be recorded during the period wherein the incremental progressive jackpot amount is produced. The accrual should be assessed based on the level of customer play.
FinREC is asking for comments through Monday, December 5.