Deloitte comment letter on ED/2010/6 'Revenue from Contracts with Customers'
We disagree with certain aspects of the ED’s proposals and we have significant concerns over other aspects. Nevertheless, we continue to support the boards in their overall objective of creating a common revenue Standard, and we believe that the work done by the boards to date can, if further developed and modified, form the basis for a clear and robust Standard on revenue recognition.
Our main concern with the ED is that the material in relation to ‘control’ is neither well developed nor clearly explained. As drafted, the guidance could be interpreted in a number of ways, which could lead to significant diversity in practice. We note that it is particularly unclear how the proposed guidance should be applied to the provision of many services.
