AICPA issues new revenue recognition working drafts

The latest round addresses software and other issues.

The AICPA Financial Reporting Executive Committee ­(FinREC) issued several new working drafts that address ­accounting issues resulting from the implementation of FASB's new revenue recognition standard.

The working drafts discuss considerations for entities in several industries as they implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers.

Final discussion of these issues will be included in a new revenue recognition guide that the AICPA is developing. FinREC is seeking feedback on the issues.

Four of the issues are related to software:

  • Issue No. 14-1, Determining Whether Software Intellectual Property Is Distinct in Cloud Computing Arrangements.
  • Issue No. 14-4(A), Defining and Identifying Potential Price Concessions.
  • Issue No. 14-4(B), Estimating the Standalone Selling Price of Options That Are Determined to Be Performance Obligations.
  • Issue No. 14-6, Estimating the Standalone Selling Price.

The other working drafts are related to:

  • Asset management: Issue No. 10-6, Recognition of Contingent Deferred Sales Charges.
  • Gaming: Issue No. 6-4, Accounting for Base Progressive and Incremental Progressive Jackpot Amounts.
  • Telecommunication: Issue No. 15-12, Disclosure and Transition.

Comments are sought by Dec. 5. FinREC also previously released a number of working drafts related to other issues. See the AICPA's revenue recognition resources page (aicpa.org/revenuerecognition) for full details.

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