FinREC exposes 5 revenue recognition issues

By Ken Tysiac

The AICPA Financial Reporting Executive Committee (FinREC) published working drafts for five new revenue recognition issues for public comment Wednesday in its ongoing project to produce an accounting and auditing guide for revenue recognition.

After reviewing public comment on the issues, FinREC will add them to the guide, which includes the work of 16 industry task forces and is available for purchase at the revenue recognition page on the AICPA website.

Numerous other completed drafts have already been published, and the guide will be updated as more issues are completed by the industry task forces. The issues exposed Wednesday were:

  • Aerospace and defense: Issue No. 1-6: Identifying the Unit of Account in Design, Development, and Production Contracts.
  • Broker-dealer: Issue No. 3-3: Principal vs. Agent: Costs Associated with Underwriting.
  • Broker-dealer: Issue No. 3-3A: Costs Associated with Investment Banking Advisory Services.
  • Power and utility: Issue No. 13-1: Accounting for Tariff Sales to Regulated Customers.
  • Time-share: Issue No. 16-6: Recognition of Revenue—Management Fees.

Comments on the broker-dealer issues can be emailed to Ivory Bare at Ivory.Bare@aicpa-cima.com. Comments on the other issues can be emailed to Kim Kushmerick at Kim.Kushmerick@aicpa-cima.com.

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

SPONSORED REPORT

Implementing a global statutory reporting maturity model

Assess your organization's capabilities and progress toward an ideal state of global statutory reporting. Sponsored by Workiva.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.