Considerations for implementation on 20 issues related to revenue recognition were issued as working drafts Monday by the AICPA Financial Reporting Executive Committee (FinREC).
After receiving public comment on the issues, FinREC will add them to the revenue recognition guide it is developing, which discusses implementation issues on an industry-specific basis.
The working drafts issued Monday were:
- Airlines: Issue No. 2-5A, Timing and Classification of Commissions in Interline Transactions.
- Airlines: Issue No. 2-6G, Changes in Volume of Mileage Credits Under a Co-Branded Credit Card Arrangement.
- Asset Management: Issue No. 10-9, Reporting Asset Management Arrangement Revenue: Gross versus Net.
- Construction: Issue No. 4-6, Contract Costs.
- Gaming: Issue No. 6-8C, Loyalty Co-Branding Arrangements.
- Gaming: Issue No. 6-12: Accounting for Racetrack Fees.
- Health Care: Issue No. 8-9, Risk Sharing Arrangements.
- Oil & Gas: Issue No. 12-1, Revenue Recognition of Sales of Oil and Gas.
- Oil & Gas: Issue No. 12-2, Inventories.
- Oil & Gas: Issue No. 12-3, Joint Operating Agreements.
- Oil & Gas: Issue No. 12-4, Derivative Commodity Contracts.
- Oil & Gas: Issue No. 12-5, Disclosures.
- Power & Utility: Issue No. 13-4, Determining the Standalone Selling Price for Commodities.
- Power & Utility: Issue No. 13-5, Accounting for Blend-and-Extend Contract Modifications.
- Power & Utility: Issue No. 13-6, Partial Terminations.
- Power & Utility: Issue No. 13-7, Timing of Revenue Recognition From Sales of Electricity and Capacity.
- Power & Utility: Issue No. 13-8, Timing of Revenue Recognition From Sales of Self-Generated Renewable Energy Credits (“RECs”).
- Power & Utility: Issue No. 13-9, Treatment of Contributions in Aid of Construction (CIAC).
- Power & Utility: Issue No. 13-12, Income Statement Presentation of Alternative Revenue Programs.
- Telecommunications: Issue No. 15-11, Wireless Transactions Within the Indirect Channel.
Informal feedback on the implementation issues can be submitted by Dec. 1 to Yelena Mishkevich (Yelena.Mishkevich@aicpa-cima.com) for airlines issues; Irina Portnoy (Irina.Portnoy@aicpa-cima.com) for asset management issues; Fred Gill (Frederick.Gill@aicpa-cima.com) for construction contractors and oil and gas issues; Kim Kushmerick (Kim.Kushmerick@aicpa-cima.com) for gaming and power and utility issues; Andy Mrakovcic (Andy.Mrakovcic@aicpa-cima.com) for health care issues; and Desiré Carroll (Desire.Carroll@aicpa-cima.com) for telecommunications issues.
—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.