Revenue recognition considerations for member-owned private clubs

Jan 22, 2018
Audit Private clubs Revenue recognition Financial reporting

In May 2014, the Financial Accounting Standards Board issued new revenue recognition guidance that will, upon its effective date, replace most pre-existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. For member-owned private clubs with a calendar year end, implementation must occur no later than the year ending December 31, 2019.

To assist in understanding how a member-owned private club could be affected by the new revenue recognition guidance, we have prepared our white paper, Revenue recognition considerations for member-owned private clubs. This white paper includes discussion of the following topics, as well as examples to illustrate certain concepts:

  • Scope: Customer or owner?
  • Scope: Revenue transaction or ownership transaction?
  • Disclosure requirements

With the effective date of the new revenue recognition guidance fast approaching, member-owned private clubs should be well on their way to: (a) assessing how their revenue recognition will be affected and (b) developing an implementation plan.

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