The American Institute of CPAs (AICPA) Financial Reporting Executive Committee has released another round of working drafts of revenue recognition implementation issues. This batch targets four industries: timeshare, health care, nonprofits and telecommunications.
The AICPA formed 16 industry task forces to help develop a revenue recognition accounting guide that will provide examples on how to apply the new revenue recognition standard. In 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) that will remove the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP. The guidance will be replaced with a principle-based approach for determining revenue recognition.
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.