Timeshare 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:

  • Melanie Giorno, Ernst & Young LLP (Co-Chair)
  • Phil Nix, Deloitte & Touche LLP (Co-Chair)
  • Kathy Pighini, Marriott Vacations Worldwide (Co-Chair)
  • Verne Bragg, Grant Thornton LLP
  • Sonya Dixon, Holiday Inn Club Vacations
  • Michael Duncan, Wyndham Vacations Ownership Inc.
  • Tom Durkee, Withum
  • Lisa Gann, Diamond Resorts International
  • Allen Klingsick, Hilton Worldwide
  • Raymond Lopez, Bluegreen Corporation
  • Paula Morabito, Morabito Consulting
  • Lori Overholt, VSA Resorts
  • Bill Powell, BDO USA LLP
  • Patrick Ryan, KPMG LLP
  • Donald "Bud" Swartz, PricewaterhouseCoopers LLP
  • Tracy Willis, Disney
Staff Contact: Kim Kushmerick, kim.kushmerick@aicpa-cima.com

IDENTIFIED REVENUE RECOGNITION IMPLEMENTATION ISSUES

Below is a list of potential revenue recognition implementation issues identified by the Timeshare 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 Identify the Performance Obligations
This implementation issues discusses considerations for identifying performance obligations within time-share sales contracts.
Finalized to be included in a future edition of the AICPA Guide Revenue Recognition
2 Collectibility
This implementation issue discusses considerations for evaluating collectibility of sales of time-sharing interests, including determining whether collection of the transaction price is probable at contract inception and identifying and accounting for amounts as variable consideration in determining collectibility of the transaction price.
Finalized to be included in a future edition of the AICPA Guide Revenue Recognition
3 Performance obligations satisfied over time for time-share unites under construction 
This implementation issue discusses how to assess if performance obligations for time-share units under construction are satisfied over time under FASB ASC 606.
Submitted to AICPA RRWG
5

Principal versus Agent Considerations for Time-share Interval Sales

The implementation issue discusses the application of principal versus agent considerations (under FASB ASC 606) to time-share interval sales.
Out for Exposure until November 1, 2017
6 Management Fee Agreements

This implementation issue will discuss accounting for management fee agreements, including gross versus net reporting for cost reimbursements.

Out for Exposure until May 1, 2017

8

Allocating the Transaction Price & Transfer of Control


9 Accounting for Owner Associations
 10  Contract Costs  


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


    Issue # Comment Due Date
    16-1 - Identify the Performance Obligations March 2, 2017
    16-2 - Collectibility June 1, 2017
    16-5 - Principal versus Agent Considerations for Time-share Interval Sales November 1, 2017
    16-6 - Management Fee Agreements May 1, 2017

     




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