Another Early Adopter Receives SEC Revenue Recognition Comments

By | October 27, 2017

Cboe Global Markets, Inc. (f/k/a CBOE Holdings, Inc.) recently received comments on its Form 10-Q related to FASB’s new revenue recognition standard. The SEC comments were:

  • ┬áPlease explain to us how you determined that rebates paid to customers in accordance with published fee schedules should not be accounted for as a reduction of the transaction price. Refer to ASC 606-10-32-25 to 32-27.
  • We note your disclosure that you recognize revenue for certain services over time. Please tell us how you considered the requirements in ASC 606-10-50-13 to 50-15 to disclose information about remaining performance obligation or application of optional exemptions.

I outlined another comment letter received by an issuer here. There are no common threads between the two letters, except both asked questions about recognizing revenue over time.

Contact Steve Quinlivan for more information.