FASB / IASB - Revenue from customer contracts 

June 3:  The FASB and the IASB in late May 2014 issued a new accounting standard that is intended to improve and “converge” the financial reporting requirements for revenue from contracts with customers.

As part of the development of the final standard, the FASB and the IASB:

  • Issued a joint discussion paper and two joint exposure drafts
  • Considered public comment letters and feedback from other outreach efforts
  • Held numerous joint and separate meetings to re-deliberate key aspects of the standard

The core principle of the standard is that an “entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.”

The FASB and IASB developed a five-step model and related application guidance, which will replace most existing revenue recognition guidance in U.S. GAAP and IFRS.

Read a June 2014 report [PDF 1.47 MB] prepared by KPMG LLP: Defining Issues: Revenue from Contracts with Customers

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