Telecommunications Entities 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:

    • Nicole Zabinski, Ernst & Young LLP (Chair)
    • Cheryl Alford, Windstream Communications
    • Gregg Amend, Moss Adams
    • Bryan Anderson, Deloitte LLP
    • Doug Chambers, Telephone and Data Systems (TDS)
    • Martin Fuhs, T-Mobile
    • Monty Garrett, Verizon
    • Lyle Hippen, CenturyLink
    • Tom Leonard, PricewaterhouseCoopers LLP
    • Chris Morgan, Grant Thornton LLP
    • John Mutrie, Sprint
    • Bill Schneider, AT&T
    • Jason Waldron, KPMG LLP
    • Brian Zook, Liberty Global
    Staff Contact: Desire Carroll,

    News and Resources

    In this audio podcast, Bill Schneider, CPA, CGMA, AT&T Director of Accounting discusses significant changes and challenges those in the telecommunications industry will encounter as a result of the new revenue recognition standard.


    Below is a list of potential revenue recognition implementation issues identified by the Telecommunications 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).

    Issue # Description of Implementation Issue Status
    1 Accounting for individual contracts with customers versus Portfolio accounting
    This implementation issue discuses considerations for telecommunication entities in determining when it is appropriate to apply ASC 606 on a portfolio or individual contract level.
    Submitted to FinREC
    2 Identification of separate performance obligations in the contract
    3 Accounting for contract modifications
    This implementation issue discuses considerations for telecommunication entities in determining when it is appropriate to apply ASC 606 on a portfolio or individual contract level.
    Submitted to AICPA RRWG
    4 Accounting for contract costs (costs of obtaining a contract)
    This implementation issue discusses the costs to obtain and fulfill contracts, including eligibility for deferral of such costs. Subsequent measurement (amortization and impairment) of deferred costs is also discussed.
    Submitted to FinREC
    5 Considering the effect of the time value of money
    This implementation issue discusses how time value of money may impact the accounting for customer contracts in the telecommunication industry when there is a significant benefit of financing. In addition, financial statement presentation of the effects of financing will be discussed.
    Submitted to FinREC
    6 Determining whether a contract exists
    This implementation issue discuses considerations for telecommunication entities in applying the guidance of ASC 606 when evaluating the impact of present enforceable rights and obligations on the contract term.
    Submitted to FinREC
    7 Considering month-to-month contracts entered into with installment sales plus material rights
    This implementation issue discusses consideration for telecommunication entities determining the contract duration of a month-to-month service contract when the customer also purchases equipment under an equipment installment plan (EIP).
    Submitted to AICPA RRWG
    8 Step 3: Determine the transaction price
    9 Step 4: Allocating the transaction price
    10 Step 5: Recognizing revenue when (or as) the entity satisfies a performance obligation
    11 Indirect channel sales
    12 Disclosure & Transitional Issues
    13 Considering the effect of non-cash consideration
    14 Allocating transaction price by applying the relative selling price method (within Step 4); How to apply the standalone selling price allocation when you have an entity that is both a principal and an agent in a contract with multiple performance obligations.
    15 Collectibility issues


    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 by the dates noted below:

    Issue # Comment Due Date

    The Telecommunications Entities Revenue Recognition Task Force recommends the following AICPA products for current revenue recognition issues:

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