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Additional Guidance with respect to Section 3400, Revenue [ED]

Comment period ends July 31, 2019

Next steps:

The AcSB ex­pects to is­sue the related Handbook material in Q4/2019

Last updated:

September 2019

Overview

At its meeting on July 17, 2018, the Accounting Standards Board (AcSB) approved a project to address stakeholders’ issues about insufficient guidance on accounting for revenue in Section 3400, Revenue, in Part II of the Handbook.

The Board plans to propose additional guidance on the following topics:

  • bill-and-hold arrangements;
  • multiple-element arrangements;
  • percentage of completion method;
  • reporting revenue gross or net; and
  • upfront non-refundable fees/payments.

In parallel with developing the proposed guidance, the Board will continue to examine the need for further improvements, including an assessment of retaining the current risk-and-rewards model.

The Board will consult its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee in developing the proposals.

 

Other developments

May 2019

On May 1, 2019, the 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.

March 2019

In March 2019, the AcSB staff up­dated the sta­tus of this pro­ject to in­di­cate that the AcSB ex­pects to is­sue an Ex­po­sure Draft in Q2/2019 and the related Handbook material in Q4/2019.

January 2019

In January 2019, the AcSB staff updated the status of this project to indicate that the AcSB expects to issue an Exposure Draft in Q4/2019.

August 2018

In August 2018, the staff of the AcSB updated this project to indicate that the Board expects to issue an Exposure Draft in Q2/2018.

July 2018

At its meeting on July 17, 2018, the Accounting Standards Board approved a project to address stakeholders’ issues about insufficient guidance on accounting for revenue in Section 3400, Revenue.

 

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