Revenue Recognition Update

All public companies that had not early-adopted the standard started using the new ASC 606 rules to recognize revenue a couple of weeks ago. I also attended my first Financial Reporting Executive Committee (FinREC) meeting last week.  While the two topics may not seem related, they are, because FinREC has been overseeing the release of numerous papers from 16 industry task forces over the past couple of years to help everyone better understand how the new revenue standard will impact the accounting for revenue.  The task forces and number of topics are as follows:

 

Industry Papers Issued Additional Papers Anticipated
Aerospace & Defense 12  
Airlines 14  
Broker Dealers 8 1
Construction Contractors 7  
Depository Institutions 2  
Gaming 14 3
Hospitality 4 1
Health Care 6 4
Insurance Entities 1 1
Asset Management/Investment Co. 10  
Not-for-Profit 4  
Oil & Gas 5  
Power & Utilities 10  
Software 9 1
Telecommunications 10 2
Timeshares 6 1

 

There is still more work to be done, and some of the additional papers may have already been issued as you are reading this blog.  If you are in the private sector, I strongly encourage you to read papers that are related to your industry or topics that your company deals with regularly.  Additional resources from the AICPA can be found here. It may seem that we have crossed the finish line because the standard is now required, but I suspect there is still a lot of work and re-work to be done in the coming years are we fully understand and implement this once-in-a-lifetime change in accounting.

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