IFRS in Focus — IASB issues revised exposure draft on revenue recognition (November 2011)
On 14 November 2011, the International Accounting Standards Board (IASB) issued a re-exposure draft ED/2011/6 Revenue from Contracts with Customers.
The revised ED is the next step in developing an entirely new revenue recognition standard and follows extensive outreach and redeliberations on the proposals in the original ED that was issued in June 2010. Although the underlying conceptual basis is unchanged, the IASB and the US Financial Accounting Standards Board (FASB) changed many detailed aspects of the original ED's proposals.
As a result of these changed, and given the importance of the revenue line item to users of financial statements, the Boards decided to expose for public comment a revised ED. The Boards are seeking comments from constituents on whether the proposals are clear and can be applied in a way that effectively communicates to users of financial statements the economic substance of an entity's contracts with customers.
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