Share this content
financial data
iStock_mediaphotos_financial data

AICPA Issues Four New Working Drafts on Revenue Recognition Issues

Dec 2nd 2016
Share this content

The American Institute of CPAs (AICPA) Financial Reporting Executive Committee continues to churn out working drafts that address industry-specific issues companies may face when adopting the new revenue recognition accounting standard.

This latest round of four working drafts target the airline and gaming industries.

These working drafts provide guidance and illustrative examples for entities implementing Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was issued by the Financial Accounting Standards Board in May 2014 and takes effect in 2018 for public companies and 2019 for private companies.

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

The latest working draft for the airline industry is:

  • Implementation Issue No. 2-6(C): Assessment of Whether “Tier Status” in an Affinity Program Conveys a Material Right to Goods and Services and Therefore Gives Rise to a Separate Performance Obligation

The following three working drafts were issued for the gaming industry:

  • Implementation Issue No. 6-2, Net Gaming Revenue
  • Implementation Issue No. 6-3, Promotional Allowances
  • Implementation Issue No. 6-8(B): Assessment of Whether “Tier Status” in an Affinity Program Conveys a Material Right to Goods and Services and Therefore Gives Rise to a Separate Performance Obligation

Issues No. 2-6(C) and No. 6-8(B) address the same issue for the airline and gaming industries. The same framework is used but with different examples specific to each industry, the AICPA says.

Comments on the working draft for airlines should be submitted to Yelena Mishkevich by Feb. 1, 2017. Comments on the working drafts for gaming should be submitted to Kim Kushmerick by Feb. 1, 2017.

Related articles:

3 More Revenue Recognition Working Drafts Issued by AICPA
AICPA Issues Revenue Recognition Working Drafts for 9 Industries
7 New Revenue Recognition Working Drafts Issued by AICPA


Replies (2)

Comments for this post are now closed.

By Muhammad Sardjono Hadidjaja
Dec 5th 2016 22:55 EST

Please don't waste time by revenue recognition working drafts all industries anymore. Earnings is an artifact (Revsin, 1977) and no real fact in the world phenomena and balance sheets is illogical financial reporting from mathematical approach. Whether we (accounting profession) will provide government with financial data for the foundation of a planning the economic development with the data collected from illogical financial report and an artifact that not represent the real world phenomena?
Again, here I suggest AICPA to prioritize their effort in a very important research to invent a simple easy to make fully the truth and global comprehensive financial statement to substitute or change the current financial reports (Balance Sheet, Income Statement, Statement of Cash Flow, statement of Equity Changes).

Thanks (0)
By jenniferbauer
Mar 27th 2017 08:36 EDT

We have seeing the news paper about American Institute of CPAs . We can't do anything up on that. as a human being we should see what are the changes they going to do. Let us watch what will going in the next time.
NAFA awards 2017

Thanks (0)