Revenue Recognition2
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Revenue Recognition Project
Project Background and Timeline
►In June 2010, as part of their efforts to achieve convergence of their standards and provide a single revenue recognition model that can be applied to a wide range of industries, the IASB and US FASB published a joint exposure draft (ED) proposing changes to how and when revenue is recognised under both IFRS and US GAAP.
►It is intended that this new model will replace all of the main pronouncements that presently address the recognition of revenue; as well as IAS 18 itself
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Revenue Recognition |
Revenue Recognition Project
Key proposals
Recognition criteria changed from ‘transfer of risks and rewards’ to ‘satisfaction of performance obligations’, when the customer has control of the asset or service is consumed
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2. Identify |
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4. Allocate the |
5. Recognise |
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1. Identify |
separate |
3. Determine |
transaction |
revenue when |
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performance |
price to the |
each |
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contract with |
transaction |
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obligations |
separate |
performance |
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customer |
price |
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within |
performance |
obligation is |
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contract |
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obligations |
satisfied |
Performance obligations may be satisfied continuously
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Revenue Recognition |
Questions
11 October 2013 |
Revenue Recognition |