The FASB and IASB (the 'boards') met on July 19, 2012 to begin redeliberating their joint revenue recognition project. The discussions were focused on concerns raised through comment letters and roundtable discussions, and other feedback received. The boards reached tentative decisions at their July meeting on identifying separate performance obligations, performance obligations satisfied over time, and onerous performance obligations. They also discussed the accounting for licenses, but did not reach any decisions and will continue to redeliberate this topic at a future meeting.
The boards plan to complete all major redeliberations by the end of 2012. A final standard is expected during the first half of 2013 with an effective date no earlier than January 1, 2015. Full retrospective application, with certain reliefs, will be required unless the boards change their current position. This topic is planned for discussion at a future meeting.
This Dataline summarizes the boards' redeliberations and tentative decisions made during the July board meeting, and the potential effects on certain industries. It also includes audio links to additional information on selected topics.