Three Revenue Recognition Working Drafts Published
The American Institute of Certified Public Accountants’ (“AICPA”) Financial Reporting Executive Committee (“FinREC”) recently published the following working drafts featuring proposed implementation guidance for Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606):
- Engineering & Construction Contractors, Issue #4-4: Uninstalled Materials. This working draft covers accounting for items acquired for a construction project but are not immediately installed.
- Depository and Lending Institutions Revenue, Issue #5-1; Scope Issues. This working draft covers how guidance under Topic 606 is applied to credit card annual fees, deposit-related charges, and servicing and sub-servicing income.
- Power & Utility Entities, Issue #13-2: Requirements and Similar Contracts with Variable Volumes. This working draft covers variable quantities in a requirements contract caused by a material right or marketing offer.
All three working drafts will be part of the revised edition of AICPA’s Audit and Accounting Guide, Revenue Recognition. Feedback on the working drafts is due Monday, October 2.
Topics: Accounting Standards Update "ASU", AICPA, AICPA Audit and Accounting Guide, Engineering and Construction Contractors, FASB, FinREC, Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Working Drafts