7 industries included in new revenue recognition guide exposure

By Ken Tysiac

Revenue recognition issues related to seven industries were exposed for public comment by the AICPA Financial Reporting Executive Committee (FinREC) on Friday as FinREC continues to develop its new revenue recognition guide.

The AICPA is seeking comment on working drafts of the following accounting issues:

  • Aerospace & Defense: Issue No. 1-10, Disclosures—Contract With Customers.
  • Asset Management: Issue No. 10-4, Costs of Managing Investment Companies.
  • Power & Utility: Issue No. 13-3, Revenue Recognition for Fixed Price Contracts—Consideration of Different Pricing Conventions.
  • Software: Issue No. 14-3, Determination of Whether a Customer's Right to Acquire Additional Users/Copies of a Delivered Software Product Constitute an Option to Acquire Additional Software Rights or Variable Consideration Related to Software Rights Already Purchased.
  • Time-Share: Issue No. 16-5, Principal versus Agent Considerations for Time-Share Interval Sales.

Comments on the working drafts may be submitted by Nov. 1 to Kim Kushmerick (Kim.Kushmerick@aicpa-cima.com) for aerospace and defense, power and utility, software, and time-share; Irina Portnoy (Irina.Portnoy@aicpa-cima.com) for asset management; Ivory Bare (Ivory.Bare@aicpa-cima.com) for broker-dealer; and Fred Gill (Frederick.Gill@aicpa-cima.com) for engineering and construction.

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

SPONSORED REPORT

6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.