FinREC issues 9 more revenue recognition working drafts for comment

By Jeff Drew

The AICPA Financial Reporting Executive Committee (FinREC) on Tuesday announced that it has released for informal comment working drafts that deal with accounting issues related to the implementation of the new revenue recognition standard in nine industries.

This is the second set of working drafts issued by FinREC, which released nine working drafts in November.

The working drafts provide—and seek comment on—industry-specific considerations and illustrative examples for entities implementing FASB Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). The AICPA has established 16 industry task forces that are developing industry-specific implementation issues. When the process is complete, the AICPA will include the helpful hints and illustrative examples in a new revenue recognition guide currently in development. The guide will provide nonauthoritative guidance on how to implement the new standard.

The AICPA is seeking comment by Sept. 1 on the latest set of working drafts, which were officially issued July 1. Those drafts cover the following industries:

FASB and the International Accounting Standards Board issued the new revenue recognition standard in May 2014. Public entities in the United States must adopt the standard for annual and interim reporting periods beginning Dec. 15, 2017. Nonpublic entities must adopt the standard for annual reporting periods beginning Dec. 15, 2018.

For more resources, go to the AICPA's revenue recognition webpage.

Jeff Drew (jdrew@aicpa.org) is a JofA senior editor.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TAX PRACTICE CORNER

More R&D tax help

"Can I use the R&D credit?" PATH Act enhancements make the credit more attractive to a wider range of taxpayers.

QUIZ

Learn to choose between ‘who’ and ‘whom’

Writers can stumble over who and whom (or whoever and whomever). If you write for business, this quiz can help make your copy above reproach.