FinREC publishes drafts on 5 revenue recognition issues

The latest topics include aerospace, broker-dealers, time-share, and utilities.

The AICPA Financial Reporting Executive Committee (FinREC) published working drafts for five new revenue recognition issues for public comment 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 most recently 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.

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.

FEATURE

Tackling TCJA changes this tax season

Return preparers must be ready for how the Tax Cuts and Jobs Act has modified many common features of individual and business returns.