AICPA issues another round of revenue recognition working drafts

By Ken Tysiac

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

A new guide the AICPA is developing will provide helpful considerations for entities implementing Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. The working drafts issued Tuesday are the latest of numerous drafts 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).

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.