Redeliberations by the FASB and IASB (the “boards”) began in January 2011 and have continued through April. The boards have focused their discussions on common themes in the comment letters, and have reached several tentative decisions. Some decisions confirm conclusions in the exposure draft and others significantly change direction from what was proposed previously.Tentative decisions made during redeliberations address several key areas, including transfer of control, identification of performance obligations, determining the transaction price, accounting for warranties, and accounting for licenses of intellectual property, among others. The key revenue issues yet to be redeliberated include amortization and impairment of capitalized costs, disclosure, and transition.The boards recently announced that they plan to issue a final standard by the end of 2011. We expect a likely effective date no earlier than 2015. Full retrospective application will be required unless the boards change their current position.
This Dataline summarizes key aspects of the proposed standard, certain themes identified in the comment letters, and tentative decisions made during recent board meetings.