Revenue Recognition
The Financial Accounting Standards Board’s (FASB) accounting standard on revenue recognition, FASB ASU 2014-09, eliminates the transaction- and industry-specific guidance under current U.S. GAAP and replaces it with a principles-based approach. The guidance is already in effect for public companies. It is effective for private entities in 2019 for annual reporting periods and in 2020 for interim periods. The resources below can help your firm and clients be ready.
Audit and Accounting Guide
The AICPA Revenue Recognition Audit and Accounting Guide includes general accounting and auditing information to consider when implementing the new revenue recognition standard, as well as industry-specific considerations.
Learning and Implementation Plan
Use this roadmap to ensure your company understands the changes to GAAP, determine how you will adopt the new guidance, find resources to train staff and educate users about the changes they can expect in your company’s financial statements.
Understanding Tax Implications
The new standard will impact the financial reporting of almost every company. But what tax consequences could also result? Financial Reporting Brief: Tax Effects of ASU 2014-09 examines this question.
FASB
The Financial Accounting Standards Board (FASB) has launched a new webpage, Implementing New Standards, that addresses why and when the FASB positions organizations for a successful and smooth transition to new financial accounting and reporting standards.
PCPS Revenue Recognition Toolkit
This toolkit breaks down the new revenue recognition standard and provides firms with insights into how the standard will affect their engagements. Additional resources are coming soon. This toolkit is available to PCPS members.
Other Resources
Webcasts and CPE courses available or coming soon.
Opportunities with CPE:
- Revenue Recognition: Mastering the New FASB Requirements
- Interpreting the New Revenue Recognition Standard: What All CPAs Need to Know
- IFRS 15 – Revenue Recognition
Archived webcasts (free, no CPE available):
- Understanding the New Revenue Recognition Standard
- FASB ASC 606 – Revenue Recognition: Asset Management Entities
- FASB ASC 606 – Revenue Recognition: Software Entities
- FASB ASC 606 – Revenue Recognition: Engineering and Construction Entities
- FASB ASC 606 – Revenue Recognition: Telecommunications Entities
Subsequent ASUs and FASB Staff Papers
Subsequent to the release of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), FASB issued the following related accounting standard updates and staff papers:
- Update 2015-14 - Deferral of the Effective Date
- Update 2016-08 - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)
- Update 2016-10 – Identifying Performance Obligations and Licensing
- Update 2016-11 – Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update)
- Update 2016-12 – Narrow-Scope Improvements and Practical Expedients
- Update 2016-20 - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers
- Update 2017-13—Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update)
- Update 2017-14—Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No.116 and SEC Relase No. 33-10403 (SEC Update)
