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Amendments to ASPE 3400 Revenue

Published on: Nov 05, 2021

The Accounting Standards Board (AcSB) has issued amendments to ASPE Section 3400 Revenue (the “Amended Guidance”), to provide more robust guidance to support the application of the existing risk-and-rewards revenue model, which differs from the control-based model used under IFRS and U.S. GAAP post-2018.

These amendments will provide guidance on:

  • Determining whether an arrangement consists of a group of contracts or a single contract and identifying the units of account in an arrangement;
  • Allocating consideration in multiple-element arrangements to separate units of account;
  • Accounting for revenue under the percentage-of-completion method;
  • Reporting revenue gross or net;
  • Determining when to recognize revenue for a bill-and-hold arrangement; and
  • Determining when to recognize revenue for upfront non-refundable fees or payments.

The Amended Guidance also expands disclosure requirements for contracts in progress at the end of the reporting period accounted for using the percentage-of-completion method.

The Amended Guidance is effective for fiscal years beginning on or after January 1, 2022, with earlier application permitted.


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Correction list for hyphenation

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