FinREC to Create Accounting Guide for Revenue Recognition Standards
Planned for a mid-2016 release, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) is working on an accounting guide for the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board’s (“IASB”) recently issued revenue recognition standards. The guide will assist accountants’ implementation of FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and the IASB’s IFRS 15, Revenue from Contracts with Customers. Additionally, the guide will offer insightful tips, examples and what high impact industries should consider when implementing the standards. There will also be sessions in all AICPA conferences and continuing professional education sessions this summer dedicated to revenue recognition.
Despite the AICPA’s intentions to work closely with 16 industries, attendees at a recent meeting showed concern that educating companies and auditors about the standards could cause inconsistency problems the FASB and IASB wanted to prevent. FASB Chairman Russell Golden noted that his board is aware of possible inconsistencies and has already worked to avoid distributing any conflicting material. Conversely, two of Golden’s fellow FASB members believe the AICPA’s efforts may unintentionally cause the inconsistencies everyone is aiming to avoid. Coffey addressed their worries by affirming FinREC is overseeing the process to ensure consistency and that each industry group remains on the same page.
Topics: Accounting Standards Update "ASU", American Board of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", Financial Reporting Executive Committee "FinREC", IFRS, Russell Golden