August 10, 2017
AICPA Addresses Three Revenue Recognition Implementation Issues
By Andrew de Labry, CPA
In May 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. The ASU supersedes and replaces nearly all existing GAAP revenue recognition guidance, including industry-specific guidance. Since ASU 2014-09 was issued, there have been numerous updates and clarifications made to aid in complying with the new guidance. The AICPA is currently developing a revenue recognition guide to help implement ASU 2014-09 and has requested public opinion on drafts covering the following three revenue recognition topics:
Depository & Lending Institutions: Issue No. 5-1, Scope Issues
Engineering & Construction Contractors: Issue No. 4-4, Uninstalled Materials
Power & Utility Entities: Issue No. 13-2, Requirements and Similar Contracts with Variable Volumes.