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:
- Jennifer Austin, KPMG LLP (Chair)
- Steve Belcher, MetLife Insurance Company
- Todd Carling, Aetna, Inc.
- Matthew Farney, Genworth Financial
- Tim Holzli, Cigna
- Margie Keeley, the Hartford Financial Services Group
- Richard Lynch, Ernst &Young LLP
- Jay Matalon, AIG
- Joseph Roesler, Allied World Assurance Company
- Bill Rosenberger, JLK Rosenberger LLP
- Mary Saslow, PricewaterhouseCoopers LLP
- Richard Sojkowski, Deloitte LLP
- Nic Staley, Nationwide Insurance Group
- Mark Tomaw, RSM US LLP
Staff Contact: Kim Kushmerick, email@example.com
IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES
Below is a list of potential revenue recognition implementation issues identified by the Insurance Entities 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
||Considerations for applying the scope exception in FASB ASC 606-10-15-2 to contracts within the scope of ASC 944
||Submitted to AICPA RRWG
||Scope: Interaction of contracts accounted for under ASC 944 and the guidance in ASC 606-10-15-2 and 15-4
The following item has been submitted to the TRG: FASB ASC 606-10-15-2 provides a scope exemption for insurance contracts within the scope of ASC 944, but ASC 606-10-15-4 contains guidance on contracts that may be partially within the scope of 606 and partially within the scope of other topics. There are differing views on how to reconcile the guidance in ASC 606-10-15-2 and 15-4, and whether a contract within the scope of ASC 944 may be partially within the scope of ASC 606 and subject to further analysis under ASC 606-10-15-4.
|Question submitted to FASB TRG
||Investment contracts within the scope of ASC 944
||Scope: Investment Contracts within the scope of ASC 944
A technical clarification was submitted to FASB Staff to recommend that FASB issue a technical correction to clarify that insurance and investment contracts within the scope of ASC 944 are excluded from the scope of ASC 606. FASB ASC 606-10-15-2 excludes insurance contracts within the scope of ASC 944 from the scope of ASC 606. ASC 944 includes accounting guidance for contracts issued or reinsured by insurance entities.
|Question submitted to FASB TRG
||Accounting for third party extended service warranty contracts within the scope of ASC 606
||Application of ASC 606 to fees for asset management services associated with investment contracts within the scope of ASC 944
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 Insurance Entities Revenue Recognition Task Force and the Insurance Entities Expert Panel
recommend the following AICPA products for current revenue recognition issues: