Aerospace and Defense Revenue Recognition Task Force 


    AICPA Revenue Recognition Task Forces are charged with developing revenue recognition implementation issues that will provide helpful hints and illustrative examples for how to apply the new Revenue Recognition Standard.

    Task Force Members:

    • Michael Wood, Raytheon (Chair)
    • Tim Bremer, Deloitte LLP
    • Michael Cleary, Boeing/General Dynamics
    • Marie Fallon, United Technologies Corporation
    • Russell Hodge, GE
    • Dan Mahoney, Northrup Grumman
    • Marc Mascola, GE Aerospace
    • Mike Miller, L-3 Communications
    • Michael Peduzzi, KPMG LLP
    • Ron Rauch, Clark Nuber P.S.
    • James Reynolds, Lockheed Martin
    • Alison Spivey, Ernst & Young LLP
    • Scott Thompson, PricewaterhouseCoopers LLP
    Staff Contact: Kim Kushmerick, kkushmerick@aicpa.org

    IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

    Below is a list of potential revenue recognition implementation issues identified by the Aerospace and Defense Revenue Recognition Task Force. The list will be updated as the task force continues it discussions. Full revenue recognition implementation issues will be posted below for informal comments after review by the AICPA Financial Reporting Executive Committee (FinREC).

    Issue # Description of Implementation Issue
    1 Acceptable measures of progress (including uninstalled materials and wasted materials)
    2 Treatment of contract costs for the various measures of progress, including pre-contract costs
    3 Constraint of revenue impact of variable pricing (incentive fees / award fees / economic price adjustments) and impact of subsequent events
    4 Contract existence on non USG contracts with contingencies (e.g., Congressional notification, export license)
    5 Transfer of control over time on non-USG contracts
    6 Separation/ segmentation
    7 Accounting for services contracts (including series of distinct POs and impact of modifications and variable fees)
    8 Contract modifications, unpriced change order, claims
    9 Options, including loss options and loss contract guidance
    10 Accounting for warranty costs
    11 Disclosures
    12 Significant Financing Component
    13 Transition issues
    14 Accounting for offset obligations
    15 Gross v. net considerations
    16 Customer furnished equipment/materials
    17 General allocation issues, similar to current GAAP
    18 Combing contracts
    19 Accounting for Performance-Based Logistics contracts

    FEEDBACK REQUESTED

    Draft Revenue Recognition Implementation Issues included for informal comment, when available, will be listed below.

    Respondents should submit any comments including the implementation issue number to revreccomments@aicpa.org by the dates noted below:

    Issue # Comment Due Date


    The Aerospace and Defense Revenue Recognition Task Force recommends the following AICPA products for current revenue recognition issues:



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