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FASB and IASB discuss revenue recognition

  • FASB-IASB Image

Nov 01, 2013

On October 30, 2013, the FASB and IASB continued redeliberations of the revenue recognition project. In particular, the boards focused on three issues — constraints, licenses, and collectibility.

The boards tentatively decided to:

  • “Include the amount of variable consideration in the transaction price only if it is probable that a subsequent change in the estimate of the amount of variable consideration would not result in a significant revenue reversal (emphasis added).”
  • Establish criteria for determining when a distinct license of intellectual property is “dynamic."
  • Confirm a contract’s collectibility to be probable in order to recognize revenue.

This meeting concludes the series of joint discussions the FASB and IASB will have concerning the revenue recognition project. A final standard is expected early in 2014.

For more information, please see Deloitte’s Accounting Journal Entry or the meeting minutes on FASB's Web site.

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