The AICPA’s Financial Reporting Executive Committee (FinREC) has published three new working drafts. The drafts contain proposed guidance for implementing the requirements of FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The deadline for providing feedback on these working drafts is October 2, 2017. When approved the guidance that will be added to the AICPA’s Audit and Accounting Guide, Revenue Recognition.
The current working drafts include:
- Engineering & Construction Contractors, Issue #4-4: Uninstalled Materials, which discusses accounting for items procured for installation in a construction project but not immediately installed;
- Depository and Lending Institutions Revenue, Issue #5-1: Scope Issues, which discusses the application of Topic 606 to credit card annual fees, deposit related fees, and servicing and sub-servicing income; and
- Power & Utility Entities, Issue #13-2: Requirements and Similar Contracts with Variable Volumes, which deals with variable quantities in a requirements contract that result from either a material right or a marketing offer.
FinREC has issued these working drafts as part of a series containing guidance for accounting issues under the new revenue recognition standard.
The working drafts are available on Accounting Research Manager (login required).
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