Topic Thread

Topic: Please let me know about "Revenue Recognition Implementation Guide"

1.  Please let me know about "Revenue Recognition Implementation Guide"

Posted 5 days ago
Dear Members

I read the CFMA's "Revenue Recognition Implementation Guide" and have some questions for that.
In the Guide, IRS does not do anything about it, but IRS issue the Notice 2017-15 (Proposed Revenue Procedure).

I see the Notice 2017-15, and I know IRS want to approve the New Revenue Recognition by "qualifying same-year method change".
Does this automatic approval method not apply for the long-term construction?

If the method is approved by the IRS, the income recognition for the long-term construction seems so influenced.

In the Guide of CFMA, there are a few significant influence between the Topic 606 and IRS, as follows;
  1. Dividing Performance Obligation of two or more in the Contract would not be approved by the IRS
  2. Items that does not have a relation to the Productivity, such as Waste Materials or Uninstalled Materials, would not be approved by the IRS
  3. Variable Considerations are constraint to the transaction price, but it does not match the present practice.

IRS already issue the Notice 2017-15 (Proposed Revenue Procedure), and want to have a comment to the "qualifying same-year method change" till 26th of this month.

Now, I'm confusing whether the problems (listed above) between Topic 606 and IRS have resolved or not.
Please let me know the answer.

Naoki Kamiyama

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Naoki Kamiyama, CPA CFP CGMA
KAMIYAMA TAX ACCT. OFFICE, Manager
Ryugasaki, JAPAN
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Naoki Kamiyama, CPA
President
KAMIYAMA TAX ACCT.
Ryugasaki, Ibaraki, JAPAN
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