Dataline: Revenue from contracts with customers -- Boards conclude redeliberations on key revenue measurement and recognition issues (No. 2013-02)

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Dataline / In depth 01/23/2013 by Assurance services
Dataline: Revenue from contracts with customers -- Boards conclude redeliberations on key revenue measurement and recognition issues (No. 2013-02)

At a glance

The FASB and IASB (the "boards") met in November and December 2012 to continue redeliberating their joint revenue recognition project. The boards reached tentative decisions on key remaining measurement and recognition issues, including the constraint for recognizing revenue from variable consideration, collectibility, licenses, allocation of transaction price, and contract acquisition costs.

The FASB and IASB (the “boards”) met in November and December 2012 to continue redeliberating their joint revenue recognition project. The boards reached tentative decisions on key remaining measurement and recognition issues, including the constraint for recognizing revenue from variable consideration, collectibility, licenses, allocation of transaction price, and contract acquisition costs.

Other key issues still to be redeliberated include scope, disclosures, and transition. The remaining issues will be discussed in early 2013. A final standard is planned for the second quarter 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 Dataline  summarizes the boards’ redeliberations and tentative decisions made at their November and December 2012 meetings as well as the potential implications for certain industries.