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FinREC Releases Working Drafts for Implementing Revenue Standard

Last week, the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”) issued industry-specific working drafts featuring proposed guidance for implementing Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board (“FASB”). The working drafts, which could be added to Audit and Accounting Guide: Revenue Recognition, are as follows: Aerospace and Defense Revenue Recognition Implementation Issue # 1-5: Transfer of Control on Non-US Federal Government Contracts — Clarification on Whether a Contract Priced at a Loss Could Qualify for Over Time Recognition in Accordance with FASB ASC 606-10-25-27(c): This proposal clarifies FinREC. Read More.

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FinREC Proposes Industry-Specific Implementation Guidance for Revenue Standard

Five working drafts have been issued to help several industries implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers, by the Financial Accounting Standards Board. The working drafts were published earlier this month and are as follows: Healthcare Industry: Health Care Entities Revenue Recognition Implementation Issue #8-10: Performance Obligations Telecommunications Industry: Telecommunications Revenue Recognition Implementation Issue #15-6: Impact of Enforceable Rights and Obligations on Contract Term Nonprofits Industry: Not-for-Profit Revenue Recognition Implementation Issue #11-5: Not-for-Profit Subscriptions and Membership Dues Time-Share Industry: Time-Share Revenue Recognition Implementation Issue #16-8: Allocating the Transaction Price & Transfer of Control and Time-Share Revenue Recognition Implementation Issue #16-10: Contract Costs Produced by the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee (“FinREC”), the proposed guidance will become part of the next version of the Audit and Accounting Guide: Revenue Recognition. Comments on the working drafts are due February 1, 2018.

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AICPA Revenue Recognition Task Force Issues Exposure Drafts

In response to Financial Accounting Standards Board Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, the American Institute of Certified Public Accountants (“AICPA”) Revenue Recognition Task Force has issued the following revenue recognition exposure drafts for comment: Brokers and Dealers Issue 3-4: Underwriting Revenues Telecommunications Issue 15-8 – Determining the Transaction Price Comments on the exposure drafts are due January 2, 2018. The AICPA is seeking comment on the issues. The comment period ends January 2, 2018.

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AICPA Committee Issues 20 Working Drafts for Implementing Revenue Standard

Twenty working drafts have been created to help companies implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Issued by the American Institute of Certified Public Accountants’ Financial Reporting Executive Committee, the draft implementation guides cover eight industries with respect to airlines, healthcare businesses, energy companies, and telecommunications. The working drafts are as follows: Working Draft: Airlines Revenue Recognition Implementation Issue #2-5A: Timing and Classification of Commissions in Interline Transactions Working Draft: Airlines Revenue Recognition Implementation Issue #2-6G: Changes in the Volume of Mileage Credits Under a Cobranded Credit Card Arrangement Working Draft: Asset Management Revenue Recognition Implementation. Read More.

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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 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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