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Industry-Specific Revenue Standard Implementation Guidance Proposed

On July 3, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee released four working drafts on the Financial Accounting Standards Board’s revenue recognition standard. The working drafts are tailored to the following four industries: Airlines. Working Draft: Airlines Revenue Recognition Implementation Issue #2-1: Regional Contracts addresses capacity purchase agreements established by major airlines with regional carriers to reach smaller markets. The working draft applies the guidance in Topic 840, Leases, to the aspects of a capacity purchase agreement that are not deemed leases. In addition, the working draft instructs air carriers how Topic 606, Revenue From Contracts With Customers, is to be employed to review the various. Read More.

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Revenue Recognition Draft Guidance Issued for Utilities and Time-Share Companies

The American Institute of Certified Public Accountants’ Financial Reporting Executive Committee has issued the following working drafts to address implementation of Accounting Standards Update No. 2016-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board (“FASB”): Working Draft: Proposed Implementation Issues for Revenue Recognition: Power & Utility Entities (#13-1): Accounting for Tariff Sales to Regulated Customers. Intended to help power and utility companies with applying ASU No. 2016-09 to revenues caused by regulated utility tariffs, this working draft explains that agreements between utilities and customers for services provided under a regulated tariff must be disclosed as a customer. Read More.

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Revenue Standard Implementation Issues Receive Working Drafts

Shortly before Christmas, the American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) published working drafts to address implementation issues related to Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The Proposed Implementation Issues recommend interpretative guidance to be included in the next Audit and Accounting Guide: Revenue Recognition update; the most recent guide was issued last month to help with application of the Financial Accounting Standards Board’s revenue recognition standard. Released as Working Drafts, Proposed Implementation Issues for Revenue Recognition: Telecommunications (#15-2, #15-9) and Working Drafts, Proposed Implementation Issues for Revenue Recognition: Time-Share (#16.1),. Read More.

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