By: George M. Wilson & Carol A. Stacey<\/p>\n
More than a quarter in advance of the effective date of the FASB\u2019s new revenue recognition guidance the SEC has made necessary changes in their own revenue recognition guidance. As you can read here<\/u><\/a>, the Commission and Staff have addressed three areas:<\/p>\n <\/p>\n <\/p>\n SAB 116 rescinds SAB Topic 13<\/u><\/strong><\/a>, which contained much of the Staff\u2019s legacy GAAP revenue recognition guidance. In addition, SAB Topic 8,\u00a0Retail Companies<\/em>, and Section A,\u00a0Operating-Differential Subsidies\u00a0<\/em>of SAB Topic 11,\u00a0Miscellaneous Disclosure,<\/em> have been updated to conform with the new FASB revenue recognition model.<\/p>\n <\/p>\n To update bill-and-hold guidance<\/strong>, this Commission Release<\/u><\/a> rescinds existing bill-and-hold guidance, which interestingly was from an Accounting and Auditing Enforcement Release (AAER No. 108,\u00a0In the Matter of Stewart Parness<\/u>). Upon adoption of ASC 606 companies will instead use the guidance in ASC 606-10-55 paragraphs 81 to 84.<\/p>\n The third update relates to vaccines sold into government stockpiles<\/strong> under the Vaccines for Children Program or the Strategic National Stockpile. The new guidance<\/u><\/a> replaces a 2005 release and continues the practice of recognizing revenue at the time a vaccine is placed in a stockpile program. In this release<\/u><\/a> the commission states that in such arrangements revenue should be recognized at the time of the transfer of the vaccine to the stockpile because the customer will have obtained control of the vaccine and the criteria for revenue recognition under the new bill-and-hold guidance will be met.<\/p>\n As always, your thoughts and comments are welcome!<\/p>\n","protected":false},"excerpt":{"rendered":" By: George M. Wilson & Carol A. Stacey More than a quarter in advance of the effective date of the FASB\u2019s new revenue recognition guidance the SEC has made necessary changes in their own revenue recognition guidance. As you can read here, the Commission and Staff have addressed three areas: SAB Topic 13 and … Continue reading SEC Updates Revenue Recognition Guidance \u2013 We Knew It Was Coming!<\/span> \n