FinREC issues a dozen revenue recognition working drafts

Asset management, gaming, and software are among the industries addressed.

In its continuing work on its new revenue recognition guide, the AICPA Financial Reporting Executive Committee (FinREC) recently issued 12 working drafts of accounting issues related to FASB's new standard.

The guide provides industry-specific guidance for entities implementing FASB Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). FinREC is adding new issues to the guide as industry task forces complete their work.

The 12 issues exposed were:

  • Asset Management: Issue No. 10-2, Management Fee Revenue, Excluding Performance Fee Revenue.
  • Asset Management: Issue No. 10-3, Management Fee Waivers and Customer Expense Reimbursements.
  • Asset Management: Issue No. 10-5, Incentive or Performance Fee Revenue, Excluding Incentive-Based Capital Allocations (Such as Carried Interest).
  • Asset Management: Issue No. 10-5A, Incentive-Based Capital Allocations.
  • Engineering and Construction Contractors: Issue No. 4-5, Impact of Termination for Convenience on Contract Duration.
  • Gaming: Issue No. 6-6, Income Statement Presentation of Wide Area Progressive Operators' Fees Received From Gaming Entities.
  • Gaming: Issue No. 6-7, Participation and Similar Arrangements.
  • Gaming: Issue No. 6-8D, Accounting for Loyalty Points Redeemed With Third Parties.
  • Health Care: Issue No. 8-6, Presentation and Disclosure.
  • Hospitality: Issue No. 7-5, Consideration to Customer (Key Money).
  • Software: Issue No. 14-8, Transfer of Control for Distinct Software Licenses.
  • Software: Issue No. 14-11, Considerations in Estimating Standalone Selling Prices.

Comments are sought by Aug. 1 and can be submitted to Irina Portnoy at Irina.Portnoy@aicpa-cima.com for asset management; Fred Gill at Frederick.Gill@aicpa-cima.com for engineering and construction contractors; Andy Mrakovcic at Andy.Mrakovcic@aicpa-cima.com for health care; or Kim Kushmerick at ­Kim.Kushmerick@aicpa-cima.com for gaming, hospitality, and software.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

8 sentences to help you master subject-verb agreement

When professionals prepare written material for readers inside their organization or outside, they should make sure that no errors distract from the message they need to convey. Take this short quiz for practice in subject-verb agreement.