Public Companies Urged to Use Revenue Standard Panel’s Meeting Minutes
As the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard prepares to take effect in 2018, Securities and Exchange Commission (“SEC”) Chief Accountant James Schnurr is pushing public companies to follow the guidance in the Transition Resource Group’s (“TRG”) meeting minutes when implementing Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers. At last week’s SEC Speaks conference, Schnurr said while the TRG’s conclusions are not authoritative, companies should still use them in practice. Additionally, any alternative approach a company takes must be communicated to the SEC.
FASB Vice Chairman and TRG Co-Chairman Jim Kroeker praised Schnurr’s comments, remarking that the TRG was pleased to hear that the chief accountant supported the panel’s process. Speaking on behalf of the American Institute of Certified Public Accountants (“AICPA”), Senior Technical Manager Kim Kushmerick said the AICPA is incorporating results from the TRG discussions into its revenue recognition implementation issues, and believes preparers in developing accounting policies should also consider the guidance.
Topics: Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Financial Accounting Standards Board "FASB", Joint Transition Resource Group for Revenue Recognition, Revenue Recognition, U.S. Securities and Exchange Commission "SEC"