The AICPA Financial Reporting Executive Committee (FinREC) on Tuesday announced that it has released for informal comment working drafts that deal with accounting issues related to the implementation of the new revenue recognition standard in nine industries.
This is the second set of working drafts issued by FinREC, which released nine working drafts in November.
The working drafts provide—and seek comment on—industry-specific considerations and illustrative examples for entities implementing FASB Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606). The AICPA has established 16 industry task forces that are developing industry-specific implementation issues. When the process is complete, the AICPA will include the helpful hints and illustrative examples in a new revenue recognition guide currently in development. The guide will provide nonauthoritative guidance on how to implement the new standard.
The AICPA is seeking comment by Sept. 1 on the latest set of working drafts, which were officially issued July 1. Those drafts cover the following industries:
- Aerospace and defense: This is the second set of implementation issues that has been released for comment for aerospace and defense entities. The original set of implementation issues was released for comment with a closure date of Dec. 31, 2015. Comments on the current working drafts can be sent to Kim Kushmerick, kkushmerick@aicpa.org;
- Airlines: Comments can be sent to Yelena Mishkevich, ymishkevich@aicpa.org;
- Broker dealer: Comments can be sent to Ivory Bare, ibare@aicpa.org;
- Engineering and construction contractors: Comments can be sent to Fred Gill, fgill@aicpa.org;
- Gaming: Comments can be sent to Kim Kushmerick, kkushmerick@aicpa.org;
- Health care: Comments can be sent to Andy Mrakovcic, amrakovcic@aicpa.org;
- Investment asset management: This is the second set of implementation issues that has been released for comment for asset managers. The original set of implementation issues was released for comment with a closure date of Dec. 31, 2015. Comments on the current working drafts can be sent to Irina Portnoy, iportnoy@aicpa.org;
- Not-for-profits: Comments can be sent to Chris Cole, ccole@aicpa.org;
- Software: Comments can be sent to Kim Kushmerick, kkushmerick@aicpa.org.
FASB and the International Accounting Standards Board issued the new revenue recognition standard in May 2014. Public entities in the United States must adopt the standard for annual and interim reporting periods beginning Dec. 15, 2017. Nonpublic entities must adopt the standard for annual reporting periods beginning Dec. 15, 2018.
For more resources, go to the AICPA's revenue recognition webpage.
—Jeff Drew (jdrew@aicpa.org) is a JofA senior editor.
