FASB Staff Q&A document: Revenue recognition implementation
FINANCIAL REPORTING INSIGHTS |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a robust framework for addressing revenue recognition issues and replaces almost all pre-existing revenue recognition guidance in current U.S. generally accepted accounting principles upon its effective date. To help address issues identified by entities as they implement the new guidance, the FASB established the Transition Resource Group (TRG). The TRG has discussed many implementation issues submitted by constituents and previously published the summaries of those discussions in a series of memos. Additionally, the Private Company Council (PCC) published educational memos, and the FASB staff published some additional resources for the franchising industry.
To assist in navigating these materials, the FASB has issued Revenue Recognition Implementation Q&As, which integrates previously issued FASB staff, TRG and PCC memos into a question-and-answer format. The Q&A document compiles existing guidance into a user-friendly format, which includes 81 questions and is organized by subject matter. It is not intended to change any prior analysis.