FinREC exposes 5 revenue recognition issues

By Ken Tysiac

The AICPA Financial Reporting Executive Committee (FinREC) published working drafts for five new revenue recognition issues for public comment Wednesday in its ongoing project to produce an accounting and auditing guide for revenue recognition.

After reviewing public comment on the issues, FinREC will add them to the guide, which includes the work of 16 industry task forces and is available for purchase at the revenue recognition page on the AICPA website.

Numerous other completed drafts have already been published, and the guide will be updated as more issues are completed by the industry task forces. The issues exposed Wednesday were:

  • Aerospace and defense: Issue No. 1-6: Identifying the Unit of Account in Design, Development, and Production Contracts.
  • Broker-dealer: Issue No. 3-3: Principal vs. Agent: Costs Associated with Underwriting.
  • Broker-dealer: Issue No. 3-3A: Costs Associated with Investment Banking Advisory Services.
  • Power and utility: Issue No. 13-1: Accounting for Tariff Sales to Regulated Customers.
  • Time-share: Issue No. 16-6: Recognition of Revenue—Management Fees.

Comments on the broker-dealer issues can be emailed to Ivory Bare at Ivory.Bare@aicpa-cima.com. Comments on the other issues can be emailed to Kim Kushmerick at Kim.Kushmerick@aicpa-cima.com.

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

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.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.