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On The Horizon: FinREC releases revenue recognition implementation working drafts

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AICPA       FinREC releases revenue recognition implementation working drafts

GASB seeks comments on revenue and expense recognition models International Federation of Accountants       IPSASB issues proposal on accounting for leases



AICPA FinREC releases revenue recognition implementation working drafts The AICPA Financial Reporting Executive Committee (FinREC) released working drafts of several revenue recognition implementation issues for comment. This latest set of working drafts discusses considerations about, and provides illustrative examples for, entities implementing the new revenue standard in the following industries:
  • Aerospace and defense
  • Gaming
  • Health care
  • Insurance
  • Telecommunications
These implementation issues will be added to the AICPA audit and accounting guide on revenue recognition after the review of public comments and finalization of the issues.

The comment period for these working drafts ends April 2.



GASB seeks comments on revenue and expense recognition models The GASB issued an Invitation to Comment, Revenue and Expense Recognition, which identifies two models that could provide a basis for recognizing revenue and expense transactions.

The exchange/nonexchange model includes a classification process based on the existing definition for “exchange transactions,” while the performance/no performance obligation model includes a classification process based on a tentative definition of a “performance obligation.”

The Invitation to Comment is intended to obtain early-stage stakeholder feedback on the Board’s revenue and expense recognition project.

Comments are due April 27.



International Federation of Accountants IPSASB issues proposal on accounting for leases The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) released for comment Exposure Draft 64, Leases, which would replace the existing guidance in IPSAS 13, Leases.

For lessees, the proposal would converge the accounting requirements with the guidance in IFRS 16, Leases, by requiring public-sector entities to recognize a right-of-use asset and a lease liability for most leases. In addition, lessors would be required to follow a right-of-use model that differs from the risks-and-rewards incidental to ownership model in IFRS 16.

The proposal also includes new accounting requirements for public-sector leases at below-market terms that would apply to both lessors and lessees.

Comments on the proposal are due by June 30.



© 2018 Grant Thornton LLP, U.S. member firm of Grant Thornton International Ltd. All rights reserved. This Grant Thornton LLP On the Horizon provides information and comments on current accounting and SEC reporting issues and developments. It is not a comprehensive analysis of the subject matter covered and is not intended to provide accounting or other advice or guidance with respect to the matters addressed in this publication. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this publication. For additional information on topics covered in this publication, contact a Grant Thornton client-service partner.