AICPA issues revenue recognition working drafts for broker-dealers

FinREC is developing an implementation guide.

The AICPA Financial Reporting Executive Committee (FinREC) issued new working drafts addressing issues that broker-dealers and depository and lending institutions face related to FASB's new revenue recognition standard.

The AICPA is developing a guide that will provide helpful considerations for entities implementing Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The working drafts are the latest in a series issued by FinREC for several industries that will be included in the new revenue recognition guide.

The working drafts for broker-dealers are:

  • Issue No. 3-1, Commission Income.
  • Issue No. 3-1A, Commission Income—Trade Date vs. Settlement Date.

The working draft for depository and lending institutions is Issue No. 5-4, Sale of Non-Operating Assets (Other Real Estate Owned).

Comments are sought by Jan. 2 and should be submitted for broker-dealer drafts to Irina Portnoy (iportnoy@aicpa.org) and for the depository and lending institution draft to Salome Tinker (sjtinker@aicpa.org).

SPONSORED REPORT

The technology assessment engagement

Are you working with the best technology? Do you know how to help your clients determine if their technology stack measures up? In this free report, J. Carlton Collins, CPA, explains how to answer those questions via a technology assessment engagement.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.