An additional glimmer of light has been shed on some of the more confusing aspects of the new revenue recognition guidance, thanks to new documentation put forth by an influential accounting association.
As reported by Compliance Week, AccountingToday and elsewhere, a total of seven new working drafts published by a committee of the American Institute of Certified Public Accountants (AICPA) hopes to address adoption challenges in areas including performance obligation identification, estimation of standalone selling price, disclosures and contingent deferred sales charges as part of an ongoing effort to assist those struggling with the task of adopting the overhauled rules.
These latest working drafts are part of an overall strategy of the national association to compile a single Accounting Guide on Revenue Recognition – a company reference guide if you will. These drafts are created based on feedback from members of industry-specific task forces created in the wake of repeated calls for assistance from companies seeking help in pivoting from the similarly industry-specific guidance in current GAAP to a more principles-based set of rules.
The hope is this ultimately combined set of drafts will help provide hints and illustrative examples to some of the more difficult, industry-specific questions which have come up since the new guidance, set for adoption in 2018, was formally announced.
Public feedback on published drafts is being accepted through Dec. 5. This brings to 10 out of a total of 16 industry task forces with working drafts published to date.