The Financial Reporting Executive Committee of the American Institute of CPAs (AICPA) recently issued two new working drafts of revenue recognition issues for the insurance and software industries.
The working drafts are the result of an ongoing effort by 16 industry task forces to compile implementation issues that will be included in a new guide on the Financial Accounting Standards Board’s revenue recognition standard.
Last month, the AICPA released an online version of the guide, Audit & Accounting on Revenue Recognition, which will be updated as more industry-specific implementation issues become finalized.
The following working draft was issued for the insurance industry:
Implementation Issue No. 9-1: Considerations for Applying the Scope Exception in FASB ASC 606-10-15-2 and 606-10-15-4 to Contracts Within the Scope of ASC 944
The industry impact is expected to be moderate.
The following working draft was issued for the software industry:
Implementation Issue No. 14-7: Significant Financing Components in Software Arrangements
The industry impact is expected to be low.
Comments on each working draft should be submitted by April 3 to Kim Kushmerick.
Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.