More online publications are expected in this area. "This is the first of our online editions on the topic and I anticipate many more updates covering industry-specific considerations in the coming months," Kim Kushmerick, the AICPA's senior technical manager for accounting standards and project leader.
The changes stem from the Financial Accounting Standards Board's Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) and subsequent ASUs amending FASB Accounting Standards Codification 606.
This publication summarizes guidance concerning when revenue should be recognized in accordance with GAAP; identifies circumstances and transactions that may signal improper revenue recognition; summarizes key aspects of the auditor's responsibility to plan and perform an audit under GAAP; describes procedures an auditor may find effective in limiting audit risk arising from improper revenue recognition; and describes audit challenges that may result from changes.
The guide also discusses accounting implications of adopting then standard for aerospace and defense and asset management industries. Future editions will address accounting implications of these and other industries. The online edition will be updated as additional implementation issues are finalized.
The guide was developed by the AICPA Industry Revenue Recognition Task Forces, Revenue Recognition Working Group and Auditing Revenue Task Force. Guidance in the industry chapters has been approved by members of the Financial Reporting Executive Committee.