CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. AICPA Issues Guide On New US Revenue Recognition Rules

AICPA Issues Guide On New US Revenue Recognition Rules

by Glen Shapiro, Tax-News.com, New York

06 January 2017


The American Institute of Certified Public Accountants (AICPA) has issued the first online edition of its Audit & Accounting Guide on Revenue Recognition in response to the new standards from the Financial Accounting Standards Board (FASB).

Public companies are required to apply the FASB's new accounting standard, Revenue from Contracts with Customers, to annual reporting periods beginning after December 15, 2017. AICPA has pointed out many companies are therefore now in the process of making accounting policy decisions as they prepare for the effective date.

The core principle of the new revenue recognition standard is for companies to recognize revenue in their accounts only when goods and services are transferred to or performed for their customers, and in amounts that reflect the payment to which the company is then entitled in exchange for those goods or services.

A survey of public companies released in October last year found that eight percent of respondents still had not started an initial assessment of the new standard, while three-quarters were still assessing. AICPA has stressed the importance of its timely implementation.

The online publication summarizes key accounting guidance regarding whether and when revenue should be recognized; identifies circumstances and transactions that may signal improper revenue recognition; summarizes key aspects of the auditor's responsibility to plan and perform an audit; describes procedures that the auditor may find effective in limiting audit risk arising from improper revenue recognition; and describes audit challenges that may be brought on by the changes in revenue recognition.

In particular, the guide also includes accounting implications of adopting the new revenue recognition standard for entities in the aerospace and defense industry and the investment asset management industry. It is planned that future editions will address accounting implications for other industries.

TAGS: generally accepted accounting principles (GAAP) | business | accounting | audit | United States | Financial Accounting Standards Board (FASB) | services

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »