This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

IFRS industry insights: The revenue recognition project — An update for the manufacturing industry

Published on: 30 May 2011

In June 2010, the IASB and FASB ('the Boards') took a major step towards developing an entirely new revenue recognition standard by issuing a set of proposals in the form of an exposure draft (ED).

These proposals would significantly affect the recognition of revenue in the manufacturing industry. Since issuing the ED, the boards have conducted extensive outreach. The comment period on the ED, which ended on the 22 October 2010, garnered over 950 responses and afterwards the Board hosted roundtable sessions that included participants from all constituencies, including preparers, users and auditors, from a wide cross section of industries.

Respondents from the manufacturing industry expressed concern over a number of proposals in the ED, including the identification of performance obligations, the satisfaction of performance obligations, the onerous contract test, contract costs, fulfilment costs and warranties. The Boards recently discussed these topics and made some tentative decisions which differ from the proposals in the ED and are following this up with further outreach activities.

Download

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.