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), the working drafts aim to clarify the definition of a performance obligation and the individual goods or services in a customer contract. The working drafts will also guide businesses with depicting the consideration they anticipate for the goods or services in the contract.
Comments on the Proposed Implementation Issues must be submitted to FinREC by March 2.