Part of the CPEA ASC 606: Revenue Recognition Series
We continue our revenue recognition series on implementation issues from FASB Accounting Standards Codification (FASB ASC) 606, Revenue from Contracts with Customers, by examining the effect of FASB ASC 606 on the hospitality industry. All five steps and other facets of the new revenue model affect financial reporting in the hospitality industry, similar to other industries. This report focuses on those areas of FASB ASC 606 that we expect will have the most impact on hospitality entities.
The hospitality label encompasses a broad and diverse spectrum of industries and businesses. Among them are hotels and accommodation services, restaurants, event planning, spas, and travel and tourism services. Entities in the hospitality industry encounter many of the same challenges and issues that entities in other industries face when implementing each step of the FASB ASC 606 model.