Hospitality 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:

  • Rich Paul, Deloitte LLP (Chair)
  • Andrew Corsini, KPMG LLP
  • Nick Daddario, Starwood Hotels & Resorts Worldwide Inc.
  • Bradley O’Bryan, Hyatt Hotels Corporation
  • Scott Oaksmith, Choice Hotels International
  • Darren Robb, Hilton Worldwide Holdings, Inc.
  • Nick Rossi, Wyndham Worldwide Corp
  • Nancy Salisbury, Ernst & Young LLP
  • Dusty Stallings, PricewaterhouseCoopers LLP
  • Marilyn Wilkins, Marriott International, Inc.
Staff Contact: Kim Kushmerick, mailto:kim.kushmerick@aicpa-cima.com

IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

Below is a list of potential revenue recognition implementation issues identified by the Hospitality 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 Franchise Revenue Arrangements
This implementation issue will discuss accounting for initial franchise fees; multiple element considerations; accounting for marketing funds, income statement classification considerations for different revenue streams.
Out for Exposure until June 1, 2017
2 Hotel Management Service Arrangements
This implementation issue will discuss accounting for incentive fees; gross/net considerations (specifically reimbursable for payroll and other); and guarantees related to managed hotels.
Out for Exposure until June 1, 2017
3 Owned and Leased Property Revenues
This issue will discuss accounting for leased hotels and owned hotels, and multiple element considerations.
Out for Exposure until June 1, 2017
4 Loyalty Programs: measurement
This implementation issue will discuss the accounting for the measurement of points and financial statement classification considerations; sale of points; and credit card company arrangements
Submitted to AICPA RRWG
4a Loyalty Programs with Tier Status

5
Contract Costs (Key Money)
This implementation issue will discuss the accounting for contract costs including; incentives to owners including key money; development notes; and development costs.

Out for Exposure until August 1, 2017


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 mailto:kim.kushmerick@aicpa-cima.com by the dates noted below:

Issue # Comment Due Date
7-1 - Franchise Fees June 1, 2017
7-2 - Hotel Management Service Arrangements June 1, 2017
7-3 - Owned and Leased Property Revenues June 1, 2017
7-5 - Contract Costs (Key Money) August 1, 2017





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