|
Description :
|
The IASB and FASB is conducting a joint project to develop concepts for revenue recognition and a general standard based on those concepts. The general standard is expected to replace the existing standards on revenue recognition, IAS 11 Construction Contracts and IAS 18 Revenue.
The Boards’ main objectives are to:
• eliminate weaknesses in existing concepts and standards. The revenue recognition requirements in IAS 18 focus on the occurrence of critical events rather than changes in assets and liabilities. Some people believe that this approach leads to debits and credits that do not meet the definition of assets and liabilities being recognised. A practical weakness of IAS 18 is that it gives insufficient guidance on contracts that provide more than one good or service to the customer. It is unclear when contracts should be divided into components and how much revenue should be attributed to each component. The International Financial Reporting Interpretations Committee receives frequent requests for guidance on the application of IAS 18.
• converge IFRSs and US requirements. There are approximately 200 sources of standards and guidance on revenue recognition in US GAAP. These are not all based on consistent concepts. There are substantial differences between IFRSs and US requirements.
The IASB has in December 2008 issued a Discussion Paper on the issue.
|
|
|
|
|
|
|
Working groups :
|
EFRAG Technical Expert Group (EFRAG TEG) -
EFRAG Secretariat -
|
|
|
Current Project Status :
|
Final Comment Letter
|
|
|
|
Efrag Output
Comment Letters
No 'Comment Letters'
Other Input
No 'Other Input'
News Items
|
