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).

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.