AcSB Exposure Draft – Revenue
May 01, 2019
On May 1, 2019, the Accounting Standards Board (AcSB) released an Exposure Draft that proposes to amend Section 3400, Revenue. The amendments will provide additional guidance on how to apply certain requirements in Section 3400. Comments are requested by July 31, 2019.
These amendments would also apply to not-for-profit organizations using the standards in Part III of the Handbook, as relevant.
Some of the proposals in the Exposure Draft include:
- Additional guidance on the application of the principles will be provided in the following areas:
- percentage of completion method;
- multiple-element arrangements;
- reporting revenue gross or net;
- bill and hold arrangements; and
- upfront non-refundable fees/payments.
- An enterprise would be required to disclose information about the method used to measure the degree of completion of contracts accounted for using the percentage of completion method. In addition, an enterprise would be required to disclose the aggregate amount of costs incurred and profits recognized.
The proposed effective date of the amendments would be for fiscal years beginning on or after January 1, 2021, with earlier application permitted.
Review the press release and Exposure Draft on the AcSB's website.
