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- US GAAP
Since the original release of the revenue standard, the FASB and
IASB, along with stakeholders from all industries, have focused on implementation
efforts related to the standard’s adoption. In June 2014, a joint FASB/IASB
transition resource group (TRG) for revenue recognition was created to discuss
implementation issues related to the revenue standard and help the boards resolve
any such issues that could give rise to diversity in practice. 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 multiple ASUs amending aspects of ASC 606 and related topics in the
FASB Accounting Standards Codification. Further, the FASB deferred the
effective dates twice by issuing ASU 2015-14 and ASU 2020-05, and it provided a
practical expedient for nonpublic franchisors by issuing ASU 2021-02.
In addition, the 16 AICPA revenue recognition industry task forces
have produced industry-specific interpretive guidance on the revenue standard. The
task forces have developed updates to the AICPA’s industry guides that address over
130 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. In addition, at the July 20, 2017, EITF
meeting, the SEC staff provided significant relief to registrants that are required
to include financial statements or financial information of other reporting entities
in their SEC filings. Specifically, the SEC staff announced that it would not object
to elections by certain public business entities (PBEs) to use the non-PBE effective
dates for the sole purpose of adopting the FASB’s standards on revenue and
leases.
The 2021 edition of this Roadmap includes updated and expanded
guidance as well as On the Radar, a new section (also available as a stand-alone
publication) that briefly summarizes emerging issues and trends related to the
accounting and financial reporting topics addressed in the Roadmap.