The AICPA Financial Reporting Executive Committee (FinREC) has issued several working drafts that address accounting issues resulting from implementation of FASB’s new revenue recognition standard.
The working drafts discuss considerations for entities in several industries as they implement Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers.
Final discussion of these issues will be included in a new revenue recognition guide that the AICPA is developing. FinREC is seeking feedback on the issues.
Four of the issues are related to software:
- Issue No. 14-1, Determining Whether Software Intellectual Property Is Distinct in Cloud Computing Arrangements.
- Issue No. 14-4(A), Defining and Identifying Potential Price Concessions.
- Issue No. 14-4(B), Estimating the Standalone Selling Price of Options That Are Determined to Be Performance Obligations.
- Issue No. 14-6, Estimating the Standalone Selling Price.
The other working drafts are related to:
- Asset management: Issue No. 10-6, Recognition of Contingent Deferred Sales Charges.
- Gaming: Issue No. 6-4, Accounting for Base Progressive and Incremental Progressive Jackpot Amounts.
- Telecommunication: Issue No. 15-12, Disclosure and Transition.
Comments are sought by Dec. 5.
—Ken Tysiac (email@example.com) is a JofA editorial director.