SEC Makes TRG Discussions Authoritative

Keywords

TRG authority, SEC guidance, ASC 606 implementation

Abstract

In a March 2016 speech, Securities and Exchange Commission (SEC) Chief Accountant James Schnurr caught many by surprise when he commented:

I would strongly encourage a registrant, whether domestic or foreign, to consult with the Office of the Chief Accountant if the registrant intends to select and implement an accounting policy for revenue that is inconsistent with TRG [Transition Resource Group] discussions.

With this comment, Schnurr effectively made TRG discussions authoritative for all SEC filers. This change is likely to have significant and unintended consequences during implementation of Accounting Standards Codification (ASC) 606 over the next several years. This article provides a brief introduction to the TRG and a discussion of the potential consequences of its new role as authoritative discussant.

Original Publication Citation

SEC Makes TRG Discussions Authoritative (C. Moffat and T. J. Wilks), RevenueHub, July 26, 2016. (460 unique views as of Jan. 13, 2023)

Document Type

Peer-Reviewed Article

Publication Date

2016

Publisher

RevenueHub

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

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