AICPA Issues 11 New Revenue Recognition Working Drafts

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Terry Sheridan
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The American Institute of CPAs’ (AICPA) Financial Reporting Executive Committee has released 11 more working drafts that contain guidance related to the implementation of the new revenue recognition standard from the Financial Accounting Standards Board.

The 11 new working drafts pertain to four industries: airlines, gaming, hospitality, and timeshare. Comments are due to the AICPA by June 1.

Sixteen industry task forces are in the process of compiling implementation issues that will be included in a new AICPA guide on the revenue recognition standard.

An online version of the guide, Audit & Accounting on Revenue Recognition, was released in January, and it will be updated as more industry-specific implementation issues are finalized by the task forces.

The most recent working drafts are:

Airlines Revenue Recognition Task Force

  • Implementation Issue No. 2-3: Passenger Ticket Breakage and Accounting for Travel Vouchers
  • Implementation Issue No. 2-4: Ancillary Fees and Services
  • Implementation Issue No. 2-5: Interline Transactions—Identifying Performance Obligations for Air Travel (including at the Segment vs. Ticket Level) and Principal vs. Agent Considerations
  • Implementation Issue No. 2-6 (a,d): Brand Name and Customer List—Timing of Revenue Recognition
  • Implementation Issue No. 2-6 (i): Interline Transactions—Loyalty Payments
  • Implementation Issue No. 2-11: Change Fees

Gaming Entities Revenue Recognition Task Force

  • Implementation Issue No. 6-8a: Loyalty Credits and Other Discretionary Incentives (Excluding Status Benefits)

Hospitality Entities Revenue Recognition Task Force

  • Implementation Issue No. 7-1: Franchise Fees
  • Implementation Issue No. 7-2: Accounting for Revenues in a Hotel Management Service Arrangement
  • Implementation Issue No. 7-3: Accounting for Owned and Leased Property Revenues

Timeshare Entities Revenue Recognition Task Force

  • Implementation Issue No. 16-2: Collectibility of Sales of Time-Sharing Interests

Comments on the airlines working drafts should be submitted to Yelena Mishkevich. Comments on the working drafts for the gaming, hospitality, and timeshare industries should be submitted to Kim Kushmerick.

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