Purpose: To provide a historical perspective on the development of Revenue from Contracts with Customers (Codification Topic 606), current developments with the standard and implications for the CPA exam.

Assignment: Individually develop a 2-3 page synthesis regarding Topic 606. In order to differentiate your work, I leave it up to you to locate information necessary to complete this assignment. Suggested sources include news articles by media, press releases by accounting firms, FASB.

Please include citations in your summary.

Minimum Content:

1. Provide background on the development of topic 606. (approx. 1 page)
   1. A brief timeline on the development of the standard including time for comments on the proposed standard.
   2. Why did the FASB deem it necessary to issue a new standard?
2. How is topic 606 different than the current revenue recognition standard? (approx. page)
   1. What is the basic approach of topic 606?
3. Provide an update on current developments with topic 606. (approx. page)
   1. Have there been any amendments to the standard? Why?
   2. When does the standard take effect?
4. What are implications for the CPA exam? (approx. 1/3 page)
   1. When will the new standard be tested within the FAR section of the CPA exam?

Sources:

Performing a Google searchfor "new revenue recognition standard" will yield lots of sources for you to develop your synthesis. Therefore, I leave it to you to locate source information for this assignment.

Please cite your sources in your document.