CAI

The Community Associations Institute (CAI) has not taken an official position on the issue of revenue recognition, but in an attempt to present a balanced discussion held a webinar in which two speakers were allowed to present their interpretations of the new revenue recognition standard.  CAI held a free webinar on February 19, 2020 on the topic of revenue recognition for CIRAs.  It is reported that some 250 individuals listened in on this webinar.  Speaker Tom Durkee, CPA, who was also the author for this section of the PPC Guide 2019 update, presented the position that the cntract liability method applies to community association reserve assessments and should be implemented.  Todd Luft, CPA presented the opposing position that the contract liability method does not apply to community association reserve assessments and should not be implemented.

Surveys taken from participants at end of the webinar produced the following results indicated below.  For many who listened to the webinar some private contact after the webinar indicated this was their first opportunity to hear the opposition point of view and it significantly impacted their viewpoint.  The survey indicates that after hearing this presentation there was a significant decrease in those who supported the "Adopt ASC 606 contract liability position" and a significant increase in those who would "NOT Adopt the contract liability position."  Also of interest is that the number of those unsure increased by 9% indicating there is still confusion on this important issue.