Revenue recognition working drafts issued for 4 industries

The airlines, gaming, hospitality, and time-share industries are represented in the latest group of revenue recognition working drafts exposed by the AICPA Financial Reporting Executive Committee (FinREC).

FinREC is seeking comment on issues that will be included in its industry-specific guide to implementing FASB’s new revenue recognition standard. The guide, which has been published online, will be updated as industry working groups complete their work on issues.

The issues exposed were:

• Airlines: Issue No. 2-3, Passenger Ticket Breakage and Accounting for Travel Vouchers.
• Airlines: Issue No. 2-4, Ancillary Fees and Services.
• Airlines: Issue No. 2-5, Interline Transactions—Identifying Performance Obligations for Air Travel (including at the Segment versus the Ticket Level) and Principal vs. Agent Considerations.
• Airlines: Issue No. 2-6(a, d), Brand Name and Customer List—Timing of Revenue Recognition.
• Airlines: Issue No. 2-6(i), Interline Transactions—Loyalty Payments.
• Airlines: Issue No. 2-11, Change Fees.
• Gaming: Issue No. 6-8(a), Loyalty Credits and Other Discretionary Initiatives (Excluding Status Benefits).
• Hospitality: Issue No. 7-1, Franchise Fees.
• Hospitality: Issue No. 7-2, Accounting for Revenues in a Hotel Management Service Arrangement.
• Hospitality: Issue No. 7-3, Accounting for Owned and Leased Property Revenues.
• Time-share: Issue No. 16-2, Collectibility of Sales of Time-Sharing Interests.

FinREC is seeking comments on the implementation issues by June 1. Comments on the airlines drafts can be emailed to Yelena Mishkevich (Yelena.Mishkevich@aicpa-cima.com), and comments on the gaming, hospitality, and time-share drafts can be emailed to Kim Kushmerick (Kim.Kushmerick@aicpa-cima.com).

—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.