CPEA

July 27, 2018

REVENUE STANDARD RESOURCES ― FASB ASC 606

The CPEA is developing an arsenal of reports, videos, and tools to equip our members with the knowledge and skills to understand and apply the requirements of the new revenue standard (FASB ASC 606). These resources have been incorporated into this section for easy access. This section will be regularly updated as new resources are developed.

Contract Review Checklist assists in assessing how contracts should be accounted for under FASB ASC 606. This tool is a guide through the major elements of the standard.

View a significantly-reduced sample of the checklist.

Our Contract Review Checklist is offered to our member firms at a reduced rate of only $150 (to help cover development costs).  Non-CPEA member price is $300. The Contract Review Checklist is offered in EXCEL format, allowing accountants to tailor the tool as necessary.

Please contact Susanne Richards at cpea@aicpa.org or Susanne.richards@aicpa-cima.com or by phone at (334) 260-2326 to purchase the tool.

 

Fortune Favors the Prepared

Report Title

Description

Part I

Key concepts, including the minimum requirements to recognize revenue, long-term contracts, variable consideration, and other topics.

Part II

Key concepts, including application of the terms “Distinct” and “Separately Identifiable,” methods for measuring progress on contracts, and significant financing component.

Part III

Contract costs, warranties, and bill and hold arrangements.

Part IV

Accounting for licenses.

Part V

Principal versus agent considerations.

ASU 2016-10

Identifying performance obligations, and licensing implementation guidance.

ASU 2016-20

FASB ASC 606 Technical Corrections & Improvements – Implementation Issues on New Revenue Recognition Standard.

Sales of nonfinancial assets

Scope of the new revenue recognition standard as it relates to sales of nonfinancial assets, as well as the accounting for such transfers.

Disclosure of impact

CPEA recommendation that non-SEC registrants consider making disclosures about the impact of the Big Three new accounting standards (revenue recognition, leases, financial instruments credit losses).

Auditing Implementation of ASU 2014-09

Addresses some of the risks associated with pre-adoption date activities and requirements and identifies procedures that are or could be responsive to those risks.

NFP Entities - Part I

General implementation issues in the not-for-profit sector.

NFP Entities - Part II

Higher education sector implementation issues.

Real Estate Industry

General implementation issues in the real estate sector.

Engineering & Construction ─ Part I

Implementing Steps 1-3 of the FASB ASC 606 model.

Engineering & Construction - Part II

Implementing Steps 4-5 of the FASB ASC 606 model.

Customer Options & Material Rights

Exploring two aspects of the new revenue standard that can have a significant impact across multiple industries.

Review Engagements - Implementation of the New Revenue Standard

Addresses how the practitioner may comply with the requirements in the SSARSs, as they relate to the client’s implementation of FASB ASC 606.

Drop Shipments by Distributors

Focuses on tangible goods where a distributor has the tangible goods shipped directly from its supplier to the distributor’s customer.

FASB Provides Additional Guidance on Private Company Concerns: Definition of Contract - Legal Enforceability

FASB staff prepared a memo to provide education on the definition of a contract.

FASB Provides Additional Guidance on Private Company Concerns: Short-Cycle Manufacturing Contracts and Out-of-Pocket Costs

FASB staff prepared a memo to provide education on short-cycle manufacturing contracts and out-of-pocket costs.

And They're Off! FASB ASC 606: Early Results and Lessons

Details four early results and lessons from our interaction with member firms and from the experiences of the current adopters of the new revenue recognition standard.

And They're Off! FASB ASC 606: Early Results and Lessons - Part II

Analyzes areas of potential significant impact for some private companies: new incremental assets- capitalization of costs incurred to obtain contracts; an in-depth technical examination of recognition of revenue gross as a principal vs. net as an agent; and, disclosures.

Compilation Engagements
Implementation of the New Revenue Recognition Standard.

The New Revenue Recognition Standard (ASU 2014-09): Loyalty Programs

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The New Revenue Recognition Standard (ASU 2014-09): Recognizing Revenue When [or as] Performance Obligations Are Satisfied

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