New revenue recognition working drafts issued for insurance, software

By Ken Tysiac

Working drafts on revenue recognition issues for the insurance and software industries were published Wednesday by the AICPA, which is seeking comments from interested parties.

The working drafts are part of the AICPA Financial Reporting Executive Committee’s work in publishing an industry-specific guide to aid with implementation of FASB’s new revenue recognition standard. Numerous other drafts have been published, and more will follow. The guide has been published in online form and will be updated as more issues are completed by industry-specific working groups.

The issues exposed were:

  • Insurance: 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.
  • Software: Issue No. 14-7, Significant Financing Components in Software Arrangements.

Comments are sought by April 3 and can be sent to Kim Kushmerick at Kimberly.Kushmerick@aicpa-cima.com.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

SPONSORED REPORT

Cybersecurity threats proliferating for midsize and smaller businesses

This report details how SMBs can properly protect private information from breaches, design and implement a cybersecurity policy, and create safeguards for training and education.

QUIZ

Test yourself on these often confused words

The spelling checker on your word processing program can do only so much to flag problems. Your best insurance is to learn the troublesome words that trip up writers and use them correctly by the standards of formal, written English.