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

2019 State of Financial Reporting Survey

We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.