Technology companies have identified a number of topics that are consistent themes in their comments on the exposure draft to the Boards. Revenue recognition for technology companies summarizes some key concerns and suggestions made by technology companies.
In general respondents were supportive of a single revenue recognition model that could be applied across industries. Respondents had concerns in the following areas:
- Some of the proposals are not considered appropriate, e.g. including credit risk in the measure of revenue
- Some of the proposals would be difficult to apply in practice, e.g. recognizing revenue based on the estimated transaction price in a contract involving a variable transaction price
- There is a lack of application guidance in some cases, e.g. in assessing the transfer of control for service contracts.