Today, the FASB and IASB (the “boards”) jointly issued their revised exposure draft (ED) Revenue From Contracts With Customers. The revised ED, released by the FASB as a proposed Accounting Standards Update (ASU) by the same name, is the result of months of redeliberations of their June 2010 ED. The proposed ASU outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and would supersede most current revenue recognition guidance.

In a press release regarding the ED, FASB Chairman Leslie Seidman stated:

This revised exposure draft on revenue recognition is based on the same underlying principles as the original draft, but we have simplified and clarified several aspects of the guidance in response to feedback we received. Because this proposed standard would affect companies across a wide range of industries, we are taking this additional quality control step to ensure that the final standard is well understood by companies, auditors and investors before it is issued as a final standard. We plan to conduct additional outreach with interested parties during the comment period to help people understand the proposed guidance and to listen to any remaining concerns.

The boards are inviting comments on all aspects of the proposal but are requesting specific feedback on (1) the criteria for when a good or service transfers over time, (2) the measurement and presentation of collectibility (i.e., the customer’s credit risk), (3) the reasonably assured revenue recognition constraint, (4) the scope of the onerous performance obligations test, (5) the proposed interim financial statement disclosure requirements, and (6) the application of certain provisions from the proposed guidance to the transfer of a nonfinancial asset that is not within the proposal’s scope (such as the sale of property, plant, and equipment).

Comments on the proposed ASU are due by March 13, 2012.

Watch for Deloitte's Heads Up on the revised ED tomorrow.