IASB and FASB discuss potential clarifications to joint revenue recognition guidance
20 Feb, 2015
At their meeting on Wednesday, the IASB and FASB discussed issues that their joint revenue Transition Resource Group (TRG) has identified in connection with implementation of their converged standard, “Revenue From Contracts With Customers” (issued as IFRS 15 by the IASB and as ASU 2014-09 by the FASB). Specifically, the boards addressed whether to clarify certain aspects of the standard that seem to be causing implementation problems for some preparers.
Topics that one or both boards may consider revising or clarifying include determining the nature of an entity’s promise in granting a licence of intellectual property, identifying performance obligations related to the level at which promised goods or services are identified in a contract with a customer, evaluating whether promised goods and services are distinct, and determining whether shipping and handling services are promised services in the contract or a fulfillment cost.
For more information, see Deloitte’s 18 February observer notes.
