Additional Guidance with respect to Section 3400 – PEAC

Sep 11, 2018

At its meeting on September 11, 2018, the PEAC discussed the Board’s approved project to address stakeholders’ issues in Section 3400, Revenue. The Committee considered the overall approach to the guidance that should be provided to address stakeholders’ issues raised. The Committee advised the Board that the proposed solutions retain the principles-based approach currently used in Section 3400. Therefore, the Committee suggested that rather than provide prescriptive guidance, the proposals should expand on the current principles, supplemented by illustrative examples when appropriate. The Committee also discussed staff’s proposed solutions that looked to revenue guidance from various sources, including the superseded Emerging Issues Committee (EIC) abstracts in the pre-changeover standards in Part V of the Handbook and the IFRS® Standards and U.S. GAAP. The Committee considered whether the staff’s proposed solutions adequately addressed the issues raised by stakeholders and whether to suggest additional references.