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
    1 Accounting for individual contracts with customers versus Portfolio accounting
    2 Determining whether a contract exists
    3 Accounting for contract costs (costs of obtaining a contract)
    4 Accounting for contract modifications (in general as well as combined with the mechanics of portfolio accounting)
    5 Identification of separate performance obligations in the contract
    • 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.
    6 Considering the effect of the time value of money
    7 Determining what approach to use to estimate variable revenue (‘most likely amount’ or ‘expected value’ method)
    8 Accounting for revenue contingent on a customer’s usage
    9 Considering the effect of non-cash consideration
    10 Considering the effect of consideration payable to a customer
    11 Accounting for credit risk
    12 Allocating transaction price by applying the relative selling price method
    13 Application of the ‘onerous test’
    14 Accounting for handsets, including: discounts and upfront loss on a handset
    15 Application of the criteria to determine whether a performance obligation is satisfied over time or at a point in time
    16 Indirect channel sales
    17 Transitional issues
    18 Disclosure 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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