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

2019 State of Financial Reporting Survey

We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.