In 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) to provide a robust framework and comprehensive principles for addressing revenue recognition issues. Additionally, the guidance on accounting for certain costs related to a contract with a customer in the scope of Topic 606 was codified in ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers.
This white paper, Revenue recognition for asset managers, highlights aspects of the guidance that are particularly pertinent for asset managers, including accounting for:
- Management fees
- Incentive or performance fees
- Incentive-based capital allocations
- Contingent deferred sales charges
- Deferred distribution commission expenses
- Costs of managing investment companies
For additional information about all of the revenue recognition guidance, including those aspects discussed in this white paper, as well as numerous examples illustrating how to apply the guidance, refer to our publication, A guide to revenue recognition.