Australia

Details

  • Service: Audit, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Industry: Technology
  • Type: Regulatory update
  • Date: 3/09/2010

New on the Horizon

These publications consider the requirements of IASB Exposure Drafts and discuss key elements of the proposed requirements and observations.

New on the Horizon: Revenue recognition for technology companies 

In the exposure draft ED/2010/6 Revenue from Contracts with Customers, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) propose a new model for revenue recognition.

It is important for companies to evaluate the proposed standard and whether it fairly reflects the wide range of industries and business models to which it would need to be applied.

 

For technology companies, key areas include the withdrawal of the percentage of completion method used to recognise revenue when producing assets specified by customers, the accounting for bundled transactions, and onerous contracts.

 

This edition of New on the Horizon considers the proposals in the ED from an IFRS perspective, with additional focus on the potential impact on technology companies.

 

International Financial Reporting Standards

KPMG helps organisations adopt IFRS, providing practical support to smooth the transition.

Technology

KPMG's technology team help electronics, software and business services companies deal with opportunities and risks arising from industry growth.
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