The SEC has issued two releases and the SEC staff has released a Staff Accounting Bulletin to update interpretive guidance regarding revenue recognition.
The first release updates the SEC‘s guidance for revenue recognition related to bill-and-hold arrangements by stating that registrants should no longer refer to the criteria in Accounting and Auditing Enforcement Release No. 108, In the Matter of Stewart Parness (AAER 108), to recognize revenue for such arrangements upon the registrants’ adoption of FASB ASC Topic 606, Revenue from Contracts with Customers.
The second release updates SEC revenue recognition guidance related its 2005 Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile. This release states that consistent with ASC Topic 606, manufacturers should recognize revenue for vaccines that are placed into the Vaccines for Children Program and the Strategic National Stockpile.
Separately, the SEC’s Office of the Chief Accountant and Division of Corporation Finance released Staff Accounting Bulletin (SAB) No. 116 that brings existing SEC staff guidance on revenue recognition into conformity with the FASB’s adoption of and amendments to ASC Topic 606.
The SAB modifies:
- SAB Topic 13, Revenue Recognition;
- SAB Topic 8, Retail Companies; and
- Section A, Operating-Differential Subsidies of SAB Topic 11, Miscellaneous Disclosure.
The The SEC releases are available on Accounting Research Manager (login required).
Login to read more news on CCH® Accounting Research Manager.
Not a subscriber? Contact us for a representative.