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 telecommunications industry

Published on: Apr 18, 2011

In June 2010, the IASB and FASB took a major step toward developing an entirely new revenue recognition standard by issuing a set of proposals in the form of an exposure draft (ED). The proposals would significantly affect the recognition of revenue recognized in the telecommunications industry. Since issuing the ED, the boards have conducted extensive outreach.

The comment period on the ED on December 15, 2010, and garnered over 750 responses. The boards subsequently hosted roundtable sessions that included participants from all constituencies, including preparers, users, and auditors from a wide cross section of industries. Respondents from the telecommunications industry expressed concern over a number of proposals in the ED, including the identification of separate performance obligations, contract costs, the onerous contract test, and modifications of contracts.

The boards recently discussed those topics and made some tentative decisions that differ from the proposals in the ED. The boards have been reaching out to constituents to gather feedback on some of these tentative decisions.


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.