The FASB and IASB (the “boards”) met in September and October 2012 to continue redeliberating their joint revenue recognition project. They reached tentative decisions on the constraint for recognizing variable consideration, certain issues related to collectibility, time value of money, distributor and reseller arrangements, contract modifications, and measuring progress toward satisfying a performance obligation.
The boards asked their staff to perform additional analysis on the constraint on recognizing revenue from variable consideration and on the presentation of impairment losses on receivables, which will be discussed at a future meeting. Other key issues still to be redeliberated include licenses, allocation of transaction price, disclosures, and transition. The boards currently plan to complete all major redeliberations by the end of 2012. A final standard is planned for the first half of 2013.
This Dataline summarizes the boards’ redeliberations and tentative decisions made at the September and October joint meetings and the potential implications for certain industries.