Audit and Accounting Guide

Chapter 16 Time-Share Entities

Notice to Readers

This chapter presents accounting implementation issues developed to assist time-share entities in applying FASB Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, and related interpretations from the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG).

The AICPA Time-Share Entities Revenue Recognition Task Force identified and developed these accounting implementation issues, and the AICPA Revenue Recognition Working Group and AICPA Financial Reporting Executive Committee (FinREC) approved them. They are a source of nonauthoritative accounting guidance for nongovernmental entities. The accounting implementation issues have been organized within this chapter as follows:

•     In relation to the five-step model of FASB ASC 606, when applicable,

—     Step 1: "Identify the contract with a customer," starting at paragraph 16.1.01

—     Step 2: "Identify the performance obligations in the contract," starting at paragraph 16.2.01

—     Step 3: "Determine the transaction price"

—     Step 4: “Allocate the transaction price to the performance obligations in the contract," starting at paragraph 16.4.01

—     Step 5: "Recognize revenue when (or as) the entity satisfies a performance obligation," starting at paragraph 16.5.01

•     By revenue stream, starting at paragraph 16.6.01

•     As other related topics, starting at paragraph 16.7.01

The following table outlines the accounting ...