The American Institute of CPAs (AICPA) Financial Reporting Executive Committee released for informal comment working drafts of revenue recognition implementation issues for nine industries.
Comments are due by Sept. 1. The nine industries are as follows:
- Aerospace and defense. This is the second set of implementation issues that have been released for comment for aerospace and defense entities. The original set of implementation issues was released for comment with a closure date of Dec. 31, 2015. Comments on the current working drafts can be sent to Kim Kushmerick, [email protected].
- Airlines. Comments can be sent to Yelena Mishkevich, [email protected].
- Brokers and dealers. Comments can be sent to Ivory Bare, [email protected].
- Engineering and construction contractors. Comments can be sent to Fred Gill, [email protected].
- Gaming. Comments can be sent to Kim Kushmerick, [email protected].
- Health care. Comments can be sent to Andy Mrakovcic, [email protected].
- Investment asset management. This is the second set of implementation issues that have been released for comment for asset managers. The original set of implementation issues was released for comment with a closure date of Dec. 31, 2015. Comments on the current working drafts can be sent to Irina Portnoy, [email protected].
- Not-for-profits. Comments can be sent to Chris Cole, [email protected].
- Software. Comments can be sent to Kim Kushmerick, [email protected].
The nine working drafts provide industry-specific helpful hints 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.
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 accounting standard.
The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current US GAAP and replace it with a principle-based approach for determining revenue recognition.
The core principle of the new revenue recognition standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Public entities in the United States must adopt the standard for annual and interim reporting periods beginning Dec. 15, 2017. Nonpublic entities must adopt for annual reporting periods beginning Dec. 15, 2018.
Related articles:
FASB, IASB Unveil Final Standard on Revenue Recognition
Understanding the Revised Accounting Model for Revenue Recognition
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