February 1, 2018
Published: Journal of Accountancy
By Ken Tysiac
Seven new revenue recognition implementation issues were exposed in working drafts issued by the AICPA Financial Reporting Executive Committee (FinREC) on Thursday.
Once completed, the working drafts will be added to the AICPA’s revenue recognition guide, which provides industry-specific considerations for implementing FASB’s new revenue recognition standard.
The accounting issues exposed Thursday include:
- Aerospace & Defense: Issue No. 1-5, Transfer of Control on Non-US Federal Government Contracts — Clarification on Whether a Contract Priced at a Loss Could Qualify for Over Time Recognition in Accordance With FASB ASC 606-10-25-27(c).
- Gaming: Issue No. 6-9A, Gaming Entity’s Costs to Obtain a Management Contract.
- Gaming: Issue No. 6-13, Disclosures — Contract With Customers.
- Health Care: Issue No. 8-3, Application of FASB ASC 606 to Continuing Care Retirement Community Centers.
- Health Care: Issue No. 8-7, Accounting for Contract Costs.
- Insurance: Issue No. 9-3, Accounting for Third Party Extended Service Warranty Contracts Within the Scope of FASB ASC 606 (Applicable to Non-Insurance Entities).
- Telecommunications Issue No. 15-7: Material Renewal Rights in Telecommunications Contracts.