Despite the IASB and FASB completing substantive redeliberations on the revenue project in February, the Boards continued discussions on sweep issues in their May meeting.
Responding to queries from the financial services industry, the Boards decided not to provide specific guidance on applying the revenue model to credit card reward programmes. Without this guidance, credit card issuers would need to use judgement in accounting for their reward programmes.
Meanwhile, first-time adopters of IFRS could elect not to apply the new revenue standard to contracts that were closed under local GAAP before the date of transition. This would reduce the cost of applying the new standard, but might further compromise comparability.
Read our IFRS Newsletter: Revenue to find out what these issues could mean for your business.