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:
- Mike Sobolewski, PricwaterhouseCoopers LLP (Co-Chair)
- Tim Wilson, BKD LLP (Co-Chair)
- John Armour, CBIZ
- Reed Brimhall, URS
- Michael Desmormeaux, Grant Thornton LLP
- Louis Torres, BDO LLP
- John Weber, McGladrey LLP
- Bill Patt, Mortenson Construction
- Michael Samson, KPMG LLP
- Geoff Sanders, Jacobs
- Gary Smalley, Fluor
- Alison Spivey, Ernst & Young LLP
- Darrin Weber, IMA
Staff Contact: Fred Gill, email@example.com
IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES
Below is a list of potential revenue recognition implementation issues identified by the Construction Contractors 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).
||Description of Implementation Issue
||Identifying the Unit of Account (including combining contracts, loss of segmentation guidance, options, separate performance obligations)
||Variable Consideration / Estimation Method (including claims, change orders (unpriced and unapproved), incentives, penalties, extras, liquidated damages, back charges, collectability)
||Acceptable measures of progress (including when each measure is acceptable to use, Accounting for Service Contracts, Wasted Materials)
||Time value of money
||Uninstalled materials / customer furnished materials/equipment (including gross v. net considerations)
||General allocation issues
||Consideration of existing Alternative A and B concepts
||Contract costs (including pre-contract costs, costs that qualify for capitalization, fulfilment costs, and warranties)
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 firstname.lastname@example.org by the dates noted below:
The Construction Contractors Revenue Recognition Task Force recommends the following AICPA products for current revenue recognition issues:
News and Other Resources
- In this blog post, Reed Brimhall and Michael Sobolewski, co-chairs of the Construction Contractors Revenue Recognition Task Force, outline their top concerns regarding the new standard.