Perspectives

A roadmap to applying the new revenue recognition standard

The 2017 edition of A Roadmap to Applying the New Revenue Recognition Standard provides Deloitte’s insights into and interpretations of the accounting guidance under the new revenue standard as codified in ASC 606, ASC 610-20, and ASC 340-40. The 2017 edition contains new interpretations and guidance as a result of FASB, TRG, SEC, and AICPA activity as well as developments in practice since publication of the 2016 edition of this Roadmap. Appendix I of the Roadmap summarizes the changes made in the 2017 edition.

Since the issuance of the new revenue standard on May 28, 2014, the FASB and IASB, along with stakeholders from all industries, have focused on implementation efforts related to the adoption of ASU 2014-09 and IFRS 15 (and related ASUs and IFRSs). Over the past several years, there have been eight TRG meetings (including two FASB-only TRG meetings), at which 52 staff papers in aggregate were discussed. The feedback the FASB received through these meetings resulted in five ASUs amending aspects of ASC 606.

The past several years have also seen significant activity by the 16 AICPA revenue recognition industry task forces. The task forces have been working on updates to the AICPA’s industry guides to address 140 accounting matters related to revenue recognition, presentation, and disclosure.

The SEC staff has been active as well. In addition to monitoring implementation efforts and discussing its expectations for transparent disclosures, the staff has updated its revenue guidance with the issuance of SAB 116, which effectively supersedes SAB Topic 13.

The 2017 edition of the Revenue Roadmap includes additional interpretive guidance and examples that reflect all TRG activities, significant developments from the AICPA’s revenue recognition working groups, SEC activities, and our own interpretations. We hope that this update will enable you to navigate some of the more challenging aspects of the new revenue standard. This publication has been developed for readers who have been following every development of the standard, as well as for readers who have not been following all developments and may be working through the standard for the first time. That is, it may function as a quick resource guide for those who have a specific question and are looking for a clear answer, or it may serve as an all-encompassing guide for those who are still building up their knowledge base to lead or work through an implementation.

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The Roadmap Series contains periodic collections of our accounting guidance on selected topics of broad interest to the financial reporting community.

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