Common ASC 606 Issues: Aerospace & Defense Entities

Keywords

aerospace & defense contracts, ASC 606 timing, complex revenue recognition

Abstract

The contractual arrangements between aerospace and defense (A&D) entities and the United States Federal Government and foreign governments create many difficulties with revenue recognition. Due to the size and complexity of A&D contracts, there may be significant gaps of time between contract initiation, receipt of payment, and delivery of goods, which can impact when revenue may properly be recognized under ASC 606. The AICPA and major accounting firms have assembled industry task forces to research the accounting issues that arise with ASC 606, and we will draw from those guides to give you an idea of the issues A&D entities should expect. For more information on any of these guides, see:

We will also provide references to other RevenueHub articles for more detailed explanations of ASC 606 topics.

Original Publication Citation

Common ASC 606 Issues: Aerospace & Defense Entities (T. J. Wilks and C. Ellsworth), RevenueHub, February 3, 2018. (3,616 unique views as of Jan. 13, 2023)

Document Type

Peer-Reviewed Article

Publication Date

2018

Publisher

RevenueHub

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

Link to Full Text

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