Important change for US revenue recognition
02 Oct 2009
Deloitte (United States) has published an issue of the Heads Up newsletter discussing the EITF's recently finalised Issue 08-1, Revenue Arrangements With Multiple Deliverables, which will significantly change the accounting for revenue recognition for arrangements with multiple deliverables.
Issue 08-1 will replace all references to 'fair value' in ASC 605-25 (FASB Codification section relating to multiple deliverables) with references to 'selling price' to clarify that the selling-price measure in Issue 08-1 is not a market-participant measure as required by ASC 820 (previously known as Statement 157). The selling price of an item is an entity-specific measure that represents the amount an entity would sell that item for in a stand-alone transaction with a customer. |