The Board agreed that the conceptual model should apply only to those contracts that are enforceable, and that the threat of legal action is not the key element.

The unit of account issue concerns applying the definitions of an asset and a liability in the course of recognition (assuming that all of the recognition criteria have been met). More specifically, the issue concerns what is the asset or liability that is to be recognised for wholly or partially executory contracts.

Some believe that the unit of account for all such assets and liabilities should be the contract as a whole. Others believe that the unit of account should be the assets and liabilities arising from the rights and obligations in the contract. Still others believe that the unit of account for some pre-performance assets and liabilities should be the contact as a whole, and for others the unit of account should be the assets and liabilities arising from the rights and obligations in the contract.

The Board agreed the unit of account should be the assets and liabilities arising from rights and obligations in the contract.

Regarding the date of recognition, the Board agreed that the delivery date should be retained and not the assignment date. The Board agreed that future performance should not be assumed. However, the Board was undecided whether revenue should be recognised based on the extinguishment of the liability or performance under the contract (broad performance).