Power and Utilities Alert 2012-08: Revenue from contracts with customers

August 2012
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Power and Utilities Alert 2012-08: Revenue from contracts with customers

At a glance

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board discussed the 2011 joint exposure draft, Revenue from Contracts with Customers. The exposure draft respondents requested guidance on disaggregating contract deliverables into separate performance obligations.

The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) met to discuss the 2011 joint exposure draft, Revenue from Contracts with Customers.

Many respondents to the 2011 exposure draft requested additional clarification and guidance on disaggregating contract deliverables into separate performance obligations, including guidance on interpreting the phrase "same pattern of transfer" to determine whether the practical expedient in the 2011 exposure draft to account for two or more distinct goods or services as a single performance obligation could be applied to consecutively transferred goods or services.

This Alert highlights tentative decisions reached on topics that are of significant interest to the power and utilities industry. The decisions reached by the boards are tentative and subject to change.