Update Regarding the Revenue Recognition Standard

The AICPA’s Financial Reporting Executive Committee has released several more working drafts of industry-specific guidance related to various implementation issues involving the Revenue Recognition Standard and is asking for feedback on the drafts including “Issue #8-8– Consideration of FASB ASC 606, Revenue from Contracts with Customers, for third party settlement estimates”.

This working draft focuses on the five steps within the Revenue Recognition standard for third party settlement estimates and includes three examples:

• Illustrative Use of the Expected Value Method – Medicare Program
• Illustrative Use of the Expected Value Method – Recovery Audit Contractor Program
• Illustrative Use of the Most Likely Amount Method – Disproportionate Share Hospital Program