This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

SEC updates interpretive guidance on revenue recognition

  • SEC (US Securities and Exchange Commission) Image

Aug 21, 2017

The SEC has issued the following two releases to update its interpretive guidance on revenue recognition: “Commission Guidance Regarding Revenue Recognition for Bill-and-Hold Arrangements” and “Updates to Commission Guidance Regarding Accounting for Sales of Vaccines and Bioterror Countermeasures to the Federal Government for Placement into the Pediatric Vaccine Stockpile or the Strategic National Stockpile.” In addition, the SEC’s Office of the Chief Accountant and its Division of Corporation Finance have issued Staff Accounting Bulletin (SAB) No. 116.

The bill-and-hold interpretive release states that upon their adoption of the FASB’s guidance on revenue recognition (ASC 606), “registrants should no longer rely on the guidance in Securities Exchange Act Release No. 23507 and Accounting and Auditing Enforcement Release No. 108, In the Matter of Stewart Parness, which set forth the criteria to be met in order to recognize revenue when delivery has not occurred.”

The vaccines and bioterror interpretative release and SAB 116 conform existing SEC guidance with ASC 606.

For more information, see Deloitte's related journal entry as well as the press release on the SEC’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.