The AICPA is looking for volunteers to provide feedback on the new revenue recognition model proposed by FASB and the IASB.
The boards have developed a single, contract-based revenue recognition model to improve financial reporting by providing clearer guidance on when an entity should recognize revenue and by reducing the number of standards to which entities must refer. It is expected that adoption in its current form would affect:
- Companies that recognize revenue from construction or long-term contracts
- Agricultural activities
- Software sales
- Multiple-element arrangements
The changes would also affect contract origination costs, sales incentives and post-delivery services.
Volunteers’ feedback will be included in an AICPA response letter on how the proposed model will affect U.S. companies.
If you have prepared financial statements under current GAAP and would like to participate, please submit your name to AICPA Volunteer Services at firstname.lastname@example.org or contact Kim Kushmerick at email@example.com.