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).

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