Asset Management and Investment Companies 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:

    • Chad B. Gazzillo, KPMG LLP (Chair)
    • Mike Barkman, Ernst & Young LLP
    • Rajan Chari, Deloitte & Touche LLP
    • David Elizandro, BNY Mellon
    • Robert Kaufman, Kaufman, Rossin &CO
    • Timothy J. Lorber, Legg Mason & Co., LLC
    • Christopher May, PricewaterhouseCoopers LLP
    • James McDonald, BlackRock, Inc
    • Lindsey Oshita, Franklin Resources, Inc.
    • John Stomper, Grant Thorton LLP
    • Tracy Whetstone, McGladrey LLP
    Staff Contact: Irina Portnoy, iportnoy@aicpa.org

    IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

    Below is a list of potential revenue recognition implementation issues identified by the Asset Management and Investment Companies Revenue Recognition Task Force. The list will be updated as the task force continues its 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 Up front distribution fee revenue (i.e., sales commission)
    2 Performance fee revenues (including carried interest)
    3 Up front distribution commission expenses (front end loaded funds)
    4 Launch costs
    5 Management fee revenues
    6 Ongoing distribution fee revenues or back end commissions fee revenue (e.g., 12b-1 fees)
    7 Contingent deferred sales charge revenue ("CDSC")
    8 Ongoing distribution expense (e.g., trailers paid to 3rd party distributors)
    9 Deferred distribution commission expenses (back end load funds)
    10 Ongoing servicing expense/sales bonus expense
    11 Fee waivers / Fund Expense Reimbursements
    12 Who is the customer?
    • This implementation issue will discuss considerations needed when assessing whether a contract exists between an asset manager and customer, and identifying who the customer is (the investor or the fund)?


    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 revreccomments@aicpa.org by the dates noted below:

    Issue # Comment Due Date


    The Investment Companies Revenue Recognition Task Force and the Investment Companies Expert Panel recommend the following AICPA products for current revenue recognition issues:



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