Canada - English

Details

  • Industry: Industrial Markets, Aerospace and Defence
  • Type: Business and industry issues, White paper
  • Date: 3/15/2012

New on the Horizon: Revenue recognition for A&D companies 

Are the revised revenue proposals good news for A&D companies?

New on the Horizon: Revenue recognition for Aerospace and Defense companies looks at the potential impact of the revised proposals on A&D companies, discusses whether their previous concerns have been addressed, and highlights application issues relevant to both IFRS and US GAAP issuers.

 

Highlights include:

 

  • Changes to the criteria for bundling goods and services and recognizing revenue over time mean that a broader range of contracts will qualify for percentage of completion accounting than under previous proposals.
  • Many challenges remain for A&D companies, including assessing when to recognize unapproved or un-priced orders, and gathering the information required to meet additional disclosure requirements.
  • A key question remains as to whether the proposals are sufficiently clear to be interpreted and applied consistently across the industry.
 

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