AccountingLink

    Revenue recognition

    14 May 2015

    To the Point - FASB proposes amendments to its new revenue recognition standard that will affect M&E entities
    Media and entertainment (M&E) entities may be interested in the topics addressed in the FASB proposal to amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    13 May 2015

    To the Point - FASB proposes first round of amendments to its new revenue recognition standard
    The Financial Accounting Standards Board (FASB) issued an exposure draft of a proposed Accounting Standards Update that would amend its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations. Comments are due by 30 June 2015.

    29 April 2015

    To the Point - FASB proposes a one-year deferral of the new revenue standard
    The FASB issued an exposure draft of a proposed Accounting Standards Update that would delay by one year the effective date of its new revenue recognition standard and allow early adoption as of the original public entity effective date. Comments are due by 29 May 2015.

    20 April 2015

    To the Point - FASB clarifies a customer’s accounting for payments made in a cloud computing arrangement
    The FASB amended its guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangement includes a software license and to eliminate today’s requirement that customers analogize to the leases guidance to determine the asset acquired in a software licensing arrangement. The guidance was developed as part of the FASB’s simplification initiative.

    14 April 2015

    Joint Transition Resource Group for Revenue Recognition items of general agreement
    The FASB and the IASB created the TRG to help them determine whether more guidance is needed on their new revenue standards. This table summarizes the issues on which members of the TRG generally agreed at meetings this year and in 2014. While the unofficial views of the members of the TRG are non-authoritative, they represent the latest thinking on each topic, and entities should consider them as they implement the new standards. We will update this table periodically.

    1 April 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition discusses more implementation issues
    Members of the Joint Transition Resource Group for Revenue Recognition (TRG) discussed a number of implementation issues stakeholders have raised about the new revenue standards and reached general agreement on many topics. TRG members did not agree (or agreed that the standards are not clear) on certain issues related to the accounting for consideration payable to a customer. They also raised additional questions on the applicability of the guidance related to a series of distinct goods or services. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    26 March 2015

    To the Point - Boards discuss revenue recognition issues that affect M&E entities as TRG prepares to take up new ones
    The FASB tentatively decided at a meeting last week to amend the noncash consideration guidance in its new revenue standard that may affect media and entertainment (M&E) entities. The FASB and the IASB also tentatively decided to amend the accounting for contract modifications at transition. The Boards' Joint Transition Resource Group for Revenue Recognition, meanwhile, plans to discuss other implementation issues of interest to M&E entities, including significant financing components and material rights, at a meeting on 30 March 2015.

    19 March 2015

    To the Point - Boards decide to make more changes to their new revenue standards
    The FASB and the IASB agreed to propose adding practical expedients to their new revenue recognition standards to make it easier for entities to account for contract modifications at transition. However, only the IASB voted to add a practical expedient for completed contracts under the full retrospective approach. The Boards also reached different decisions on how to address questions that have arisen about the guidance on noncash consideration, presentation of sales taxes and collectibility. Any changes to the standards would be subject to the due process procedures of each Board, including seeking public comment. The FASB will decide at a meeting in April whether to propose delaying the effective date of its standard.

    19 February 2015

    To the Point - Boards reach different decisions on some of the proposed changes to the new revenue standards
    The FASB and the IASB agreed to clarify the guidance in their new revenue standards on accounting for licenses of intellectual property and identifying performance obligations. However, they did not agree on the nature and breadth of all of the changes or the timing of when such changes may be finalized. Any changes made to either revenue standard would be subject to the due process procedures of each Board, including seeking public comment. The new standards in US GAAP and IFRS are currently converged, but if the Boards act on the views they expressed at the joint meeting, we may see some diversity in practice between US GAAP and IFRS preparers.

    19 February 2015

    To the Point - FASB and IASB decide more guidance is needed on M&E revenue implementation issues
    This publication focuses on how media and entertainment (M&E) entities would be affected by the Boards’ tentative decisions to amend their new revenue guidance on licenses of intellectual property and identifying performance obligations.

    28 January 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition tackles a long list of implementation issues
    To help preparers implement the new revenue standard, the Joint Transition Resource Group for Revenue Recognition (TRG) addressed more issues than in previous meetings. TRG members reached general consensus on many of the topics discussed, but they did not reach consensus on questions regarding contract modifications during transition, noncash consideration, collectibility and variable consideration payable to a customer. Our publication includes a list of questions and answers on which TRG members reached general consensus.

    26 January 2015

    Technical Line - Nonpublic entity considerations for the new revenue standard
    Private companies may face significant changes in how they recognize revenue when they adopt the new standard issued by the FASB and the IASB. Common transactions that may be affected include sales with rights of return, related party transactions and those involving prepayment or payment in arrears. Our Technical Line discusses key implications for private companies and supplements our Technical Line, A closer look at the new revenue recognition standard.

    22 January 2015

    To the Point - Transition Resource Group on Revenue Recognition to discuss issues that affect media and entertainment entities
    The Joint Transition Resource Group for Revenue Recognition (TRG) will discuss 11 implementation issues at its meeting on 26 January 2015, including noncash consideration, which will affect media and entertainment (M&E) entities that currently apply industry-specific guidance on advertising barter arrangements. M&E entities also may be interested in the TRG’s discussion of significant financing components, material rights, consideration payable to a customer, and incremental costs to obtain a contract. At the meeting, the staffs of the Boards also will provide an update on their research on whether more guidance is needed on licenses of intellectual property.

    3 November 2014

    To the Point - Joint Transition Resource Group tackles new revenue topics
    At the second meeting of the Joint Transition Resource Group for Revenue Recognition (TRG), FASB Vice Chairman James Kroeker said the FASB has added a project to explore whether to propose delaying the new revenue standard’s effective date. This project will be subject to FASB’s normal due process including outreach, deliberations, exposure and re-deliberations before a conclusion is reached on whether to delay the effective date. A decision on whether to propose a delay is expected in the second quarter of 2015. Regardless of any possible delay, companies should actively continue implementation efforts, which are likely to be significant for many companies. TRG members also discussed five implementation issues at the meeting and expressed diverse points of view about two of them: licenses of intellectual property and the determination of whether a good or service is distinct within the context of a contract.

    22 October 2014

    Technical Line - A closer look at the new revenue recognition standard - retail and consumer products
    The new revenue recognition standard issued by the FASB and the IASB creates a comprehensive source of revenue guidance for all entities in all industries. Our Technical Line considers certain implications for the retail and consumer products industry and expands on our Technical Line, The new revenue recognition standard - retail and consumer products. It also supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    17 September 2014

    Technical Line - The new revenue recognition standard - engineering and construction
    Our Technical Line considers key implications of the revenue recognition standard for engineering and construction entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    4 September 2014

    Technical Line - The new revenue recognition standard - aerospace and defense
    Our Technical Line considers key implications of the revenue recognition standard for aerospace and defense entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    2 September 2014

    Practical matters for the c-suite - Revenue reckoning: a transformational new standard
    Our latest edition of our FAAS’ Practical matters for the c-suite series helps organizations understand the impact of the new revenue recognition standard issued by FASB and the IASB. The standard will supersede virtually all existing revenue guidance under US GAAP and IFRS and this publication describes what chief financial officers, chief accounting officers or board members need to do now to prepare for the change.

    28 August 2014

    Technical Line - The new revenue recognition standard - airlines
    Our Technical Line considers key implications of the revenue recognition standard for airline entities.. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    28 August 2014

    Technical Line - The new revenue recognition standard - banking
    Our Technical Line considers key implications of the revenue recognition standard for Banking entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    28 August 2014

    Technical Line - The new revenue recognition standard - brokers and dealers in securities
    Our Technical Line considers key implications of the revenue recognition standard for brokers and dealers in securities entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it

    28 August 2014

    Technical Line - The new revenue recognition standard - insurance
    Our Technical Line considers key implications of the revenue recognition standard for Insurance entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    28 August 2014

    Technical Line - The new revenue recognition standard - real estate
    Our Technical Line considers key implications of the revenue recognition standard for real estate entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    27 August 2014

    Technical Line - The new revenue recognition standard - automotive
    Our Technical Line considers key implications of the revenue recognition standard for automotive entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    27 August 2014

    Technical Line - The new revenue recognition standard - media and entertainment
    Our Technical Line considers key implications of the revenue recognition standard for media and entertainment entities.. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    27 August 2014

    Technical Line - The new revenue recognition standard - mining and metals
    Our Technical Line considers key implications of the revenue recognition standard for mining and metals entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    27 August 2014

    Technical Line - The new revenue recognition standard - power and utilities
    Our Technical Line considers key implications of the revenue recognition standard for power and utilities entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    27 August 2014

    Technical Line - The new revenue recognition standard - telecommunications
    Our Technical Line considers key implications of the revenue recognition standard for telecommunications entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    26 August 2014

    Technical Line - The new revenue recognition standard - oil and gas
    Our Technical Line considers key implications of the revenue recognition standard for oil and gas entities.. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    26 August 2014

    Technical Line - The new revenue recognition standard - retail and consumer products
    Our Technical Line considers key implications of the revenue recognition standard for retail and consumer products entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    26 August 2014

    Technical Line - The new revenue recognition standard - software and cloud services
    Our Technical Line considers key implications of the revenue recognition standard for software and cloud services entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    26 August 2014

    Technical Line - The new revenue recognition standard - technology
    Our Technical Line considers key implications of the revenue recognition standard for technology entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    25 August 2014

    Technical Line - The new revenue recognition standard - health care
    Our Technical Line considers key implications of the revenue recognition standard for health care entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    25 August 2014

    Technical Line - The new revenue recognition standard - life sciences
    Our Technical Line considers key implications of the revenue recognition standard for life sciences entities. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    14 August 2014

    Technical Line - The new revenue recognition standard - asset management
    The new revenue recognition standard issued by the FASB and the IASB creates a comprehensive source of revenue guidance for all entities in all industries. Our Technical Line considers key implications of the revenue recognition standard for asset managers. It also provides an overview of the revenue recognition model and highlights considerations in applying the model for the industry. This publication supplements our Technical Line, A closer look at the new revenue recognition standard, and should be read in conjunction with it.

    23 July 2014

    To the Point - Joint Transition Resource Group for Revenue Recognition debates implementation issues
    At its first meeting, the Joint Transition Resource Group for Revenue Recognition discussed four implementation issues. Two involved gross versus net revenue presentation, one involved royalties on licensed intellectual property and the other involved impairment of capitalized contract costs. The Boards have said they will provide a status update on these issues on or before the group’s next meeting on 31 October 2014. Our To the Point publication tells you what you need to know about the discussion.

    10 July 2014

    To the Point - Audit committee considerations for the new revenue standard
    Our To the Point publication discusses questions audit committee members may want to ask as they oversee a company’s implementation of the comprehensive joint revenue recognition standard the FASB and the IASB issued recently.

    16 June 2014

    Technical Line - A closer look at the new revenue recognition standard
    The new revenue recognition standard issued by the FASB and the IASB creates a comprehensive source of revenue guidance for all companies in all industries. Because it is more principles-based than the US GAAP guidance it will supersede, many entities will have to exercise more judgment. Our Technical Line analyzes the new guidance and highlights key changes from current practice.

    16 June 2014

    Technical Line - New revenue standard affects more than just revenue
    Our Technical Line focuses on significant changes the FASB made to other parts of US GAAP through the consequential amendments. Affected items include the sale of certain nonfinancial assets (e.g., real estate) and advertising costs.

    28 May 2014

    Financial Reporting Developments - Software: Revenue recognition
    We have updated our Financial Reporting Developments publication on software revenue recognitionto to further clarify and enhance our interpretive guidance.

    28 May 2014

    To the Point - Boards issue sweeping joint revenue standard
    The FASB and the IASB released new converged standards for recognizing revenue. Our To the Point publication tells you what you need to know about the final standards.

    19 May 2014

    Financial Reporting Developments - Revenue recognition: Multiple element arrangements
    We have updated our Financial Reporting Developments publication on multiple-element arrangements to reflect our current understanding of this guidance.

    28 January 2014

    To the Point - Board issues final guidance for service concession arrangements
    The FASB issued final guidance stating that entities should not account for certain service concession arrangements entered into with public-sector entities as leases under ASC 840, Leases, and should not recognize the related infrastructure as property, plant and equipment. Instead, entities should refer to other US GAAP, such as ASC 605, Revenue Recognition, to account for these arrangements. While the final guidance is effective for annual periods beginning after 15 December 2014, early adoption is permitted. Our To the Point publication summarizes what you need to know about the new final guidance.

    5 December 2013

    To the Point - It’s time to start preparing for the new revenue standard
    With the new revenue standard expected early in 2014, companies should begin preparing now. The new standard will likely affect their financial statements, business processes and personnel, and internal control over financial reporting, and implementing it could be a significant undertaking. Our To the Point discusses what you can do now to prepare for a successful implementation.

    31 October 2013

    To the Point - Boards conclude redeliberations on revenue recognition proposal
    In response to concerns raised by constituents during drafting of their joint revenue recognition standard, the FASB and the IASB this week decided to set thresholds for collectibility and the constraint on variable consideration and to clarify the accounting for revenue from licenses of intellectual property. The Boards will now work to finalize the standard. Our To the Point publication summarizes these decisions.

    19 September 2013

    To the Point - Boards’ deliberations on remaining topics delay final revenue standard
    In response to concerns raised by constituents, the Boards this week continued to discuss how the joint revenue recognition standard will address collectibility, the constraint on variable consideration and the accounting for revenue from licenses of intellectual property. They decided that further discussions are necessary. As a result, we do not expect the standard to be issued until late this year at the earliest. Our To the Point publication summarizes the discussion at this week’s meetings.

    25 July 2013

    To the Point - Boards near completion of the revenue recognition standard
    The FASB and the IASB this week clarified how aspects of variable consideration and collectibility will be addressed in the standard. The Boards also addressed how entities should determine whether a contract meets the criteria to be within the scope of the guidance and the accounting for contracts that are not in the scope of the guidance. Our To the Point publication summarizes these decisions.

    29 May 2013

    To the Point - Revenue recognition for credit card rewards and in-substance real estate
    The FASB and the IASB tentatively agreed that the new revenue recognition standard will not specifically address credit card reward programs. The FASB also clarified that the new standard should be applied to transfers of in-substance nonfinancial assets to noncustomers. Our To the Point publication summarizes these decisions.

    21 March 2013

    Technical Line - Final revenue standard is taking shape
    The FASB and the IASB have substantially completed their redeliberations on a comprehensive new revenue recognition standard, which will be effective for annual periods beginning on or after 15 December 2016 for public entities with a one-year deferral for nonpublic entities. This publication summarizes the Boards’ decisions to date and discusses the remaining topics the Boards must address.

    21 February 2013

    To the Point - Boards revisit disclosure, transition and effective date for revenue standard
    The FASB and the IASB tentatively decided that entities could retrospectively adopt their new revenue standard or adopt it on a modified retrospective basis for annual reporting periods beginning on or after 1 January 2017. The Boards also addressed several disclosures they proposed in 2011. Our To the Point publication summarizes these decisions.

    31 January 2013

    To the Point - Boards address various industry-specific issues in revenue proposal
    The FASB and the IASB continue to make progress on their joint proposal on revenue recognition. At their meeting this week, the Boards addressed the application of the proposed guidance to certain transfers of assets, the scope of the proposed standard, including for financial services contracts and collaborative arrangements, accounting for contracts with customers that contain repurchase agreements and the effect of the proposed standard on asset managers. Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

    20 December 2012

    To the Point - Boards check a few more items off their list in revenue redeliberations
    The FASB and the IASB continue to make progress on their joint proposal on revenue recognition. At a meeting this week, the Boards addressed accounting for contract acquisition costs, constraining the cumulative amount of revenue recognized for licensed intellectual property and allocating the transaction price (including the effect of the allocation on some bundled arrangements). Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

    19 December 2012

    Technical Line - Accounting for income from the sale of patents
    Many technology companies seek to monetize their intangible intellectual property assets by selling a patent or a portfolio of patents. Because these arrangements can be complex, determining when and how to account for the proceeds can require significant judgment. Our Technical Line publication highlights various factors that should be considered when accounting for the sale of patents.

    29 November 2012

    To the Point - Boards explore a new direction on license arrangements
    The FASB and IASB tentatively decided that licenses of intellectual property would be treated as either “rights” transferred to a customer at a point in time or promises to provide “access” over time, depending on the nature of the license. We encourage companies to consider the indicators the Boards’ staffs have developed to determine the nature of a license and to share their views about whether the approach is operational if they have concerns.

    21 November 2012

    To the Point - Licenses constrain progress on revenue redeliberations
    The FASB and the IASB continue to redeliberate their joint proposal on revenue recognition. At a meeting this week, they made progress on how to address collectibility and the proposed constraint on variable consideration. However, they acknowledged that more work is needed on how to recognize revenue from licenses of intellectual property and directed their staffs to conduct additional outreach on whether an approach they are exploring is operational. Our To the Point publication summarizes the decisions and provides an update on the Boards’ redeliberation plan.

    24 May 2012

    To the Point - Boards to reconsider key issues in revenue recognition project
    Our To the Point publication summarizes significant comment letter themes and discussions at recent roundtables hosted by the Boards and the Boards’ proposed redeliberation plan. The Boards have targeted early 2013 for issuance of a final standard.

    22 March 2012

    Technical Line - Recognizing revenue on the sale of virtual goods
    Many publishers of social games, virtual worlds and popular multiplayer online role playing games offer games free of charge and give players the opportunity to purchase virtual goods to enhance their game-playing experience. Our Technical Line describes the revenue recognition methods available to account for the sale of virtual goods. It also addresses the factors to consider when selecting an accounting policy for revenue recognition on the sale of virtual goods, as well as gross versus net recognition considerations.

    15 March 2012

    To the Point - More work needed on revenue recognition
    In our comments to the Boards on their latest revenue recognition proposal, we say the Boards have made significant progress addressing the concerns raised by constituents about their initial proposal. However, we believe the Boards need to reconsider some aspects of the proposal and consider providing additional implementation guidance to promote consistent application.

    12 January 2012

    Technical Line - Aggregating milestone method disclosures may sometimes be appropriate
    Many life sciences companies adopted Accounting Standards Update 2010-17, Milestone Method of Revenue Recognition, for the first time in their 2011 financial statements. The standard requires disclosures at the individual milestone level. While we believe entities should provide these disclosures for each material milestone, it may be appropriate for life sciences entities to aggregate disclosures for immaterial milestones. Our Technical Line publication provides questions to consider when assessing the materiality of milestones for disclosure.

    5 January 2012

    To the Point - Surprises lurk in the proposed revenue recognition model
    In conjunction with its November 2011 re-exposure of the joint revenue recognition proposal, the FASB recently issued a draft of the proposed consequential amendments to the Accounting Standards Codification (the Codification). The proposed amendments include not only the proposed changes to Topic 605, Revenue Recognition, but also the changes to the guidance that resides outside of Topic 605.

    21 December 2011

    Practical matters for the c-suite - Revenue recognition project: second time’s a charm?
    Our new edition of Practical matters for the c-suite, Revenue recognition project: second time’s a charm?, complements our recent Technical Line and To the Point publications on the changes to last year’s exposure draft on revenue recognition. This publication also explores in more detail how the revised exposure draft would affect an organization’s finance, tax, IT systems and business processes.

    12 December 2011

    Technical Line - Double-exposure: the revised revenue recognition proposal
    The FASB and IASB recently re-exposed their joint revenue recognition proposal, which would converge revenue recognition guidance under US GAAP and IFRS into a single model and replace essentially all revenue recognition guidance. While the overall framework is the same as in the 2010 exposure draft (ED), key parts of the proposal have changed. Some changes move the proposal closer to US GAAP than the 2010 ED. Others would significantly change current practice for some companies.

    14 November 2011

    To the Point - A new proposal for revenue recognition
    The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) (collectively, the Boards) issued a revised joint proposal to create a single, global revenue recognition model. While the overall framework is the same as in the 2010 exposure draft (ED), key parts of the proposal have changed. Some changes move the proposal closer to US GAAP than the 2010 ED. Others would significantly change current practice for some companies. Our To the Point publication highlights changes from the 2010 ED and current practice.

    28 July 2011

    Technical Line - A snapshot of the new joint revenue model
    The Boards have completed their redeliberations on their revenue recognition proposal and plan to issue a second exposure draft due to the significant changes they made to the model they proposed last year. Our Technical Line summarizes the revised model based on our understanding of the tentative decisions the Boards reached during their redeliberations. We also compare the guidance in the original exposure draft to the guidance we expect in the upcoming exposure draft.

    15 June 2011

    To the Point - Boards to re-expose revenue proposal
    The FASB and the IASB decided to formally expose their joint revenue recognition proposal for a second time because they have made significant changes to the model they proposed last year. Our To the Point explains what you need to know about this decision and other recent changes the Boards have made to their proposal.

    18 April 2011

    Technical Line - Another step toward a final revenue standard
    Our Technical Line summarizes the key conclusions reached by the FASB and IASB at the end of April 2011 on its revenue recognition project.

    6 April 2011

    Technical Line - New revenue recognition model is taking shape
    The FASB and the IASB have made significant revisions to their joint revenue recognition proposal to address constituents’ concerns. Our Technical Line summarizes significant changes made as a result of redeliberations.

    1 December 2010

    Revenue recognition under IFRS - what do respondents think of the proposed changes
    Our publication outlines our main observations from a study performed on the responses to the joint IASB/FASB proposal on revenue recognition.

    19 November 2010

    Hot Topic - Revenue recognition - FASB and IASB discuss redeliberation plan
    Our Hot Topic provides a summary of the FASB and IASB staff update on the status of the joint revenue recognition project.

    17 November 2010

    Technical Line - Revenue recognition - estimating selling price
    Our Technical Line provides guidance on factors to consider when making the best estimate of selling price under the new multiple-element model for revenue recognition.

    27 October 2010

    Technical Line - Any future for sell-through accounting?
    Our Technical Line highlights the potential implication of the proposed FASB and IASB revenue recognition model on sell-through accounting. Under the proposed model, certain entities may conclude that recognition of revenue upon the transfer of control of the product to the distributor or reseller is appropriate.

    8 September 2010

    Revenue: Will your key performance measure change?
    Our Practical Matters highlights the effects the revenue recognition proposal would have on areas such as financial metrics, systems, tax, and stakeholder communications.

    1 August 2010

    Financial Reporting Developments - The road to convergence: the revenue recognition proposal
    Our FRD outlines the principles in the FASB and IASB joint proposal on revenue recognition and highlights some of the more significant implications of the proposed revenue recognition model.

    30 June 2010

    Technical Line - Effects of the new multiple-element revenue guidance on cloud computing vendors
    Our Technical Line provides an overview of the amendments in ASU 2009-13 and describes how these amendments may affect cloud computing arrangements.

    25 June 2010

    Hot Topic - FASB proposes single revenue recognition model
    The FASB and the IASB released their joint proposal to create a single, converged revenue recognition model. The proposed model outlines the principles entities should apply in recognizing revenue from contracts to provide goods and services to their customers. Our publication summarizes the proposal and points out the common components of revenue transactions that will be changed by the proposed guidance, including product warranties and contingent consideration.

    9 April 2010

    Hot Topic - Revenue recognition on the sale of virtual goods
    Virtual goods are non-physical objects within the game represented by pictures, animations or three-dimensional objects. Many online game operators facilitate the sale of virtual goods by incorporating a virtual currency within the online game. Our Hot Topic focuses on the different revenue recognition methods applicable to the sale of virtual goods for cash (or purchased virtual currency) in a free-to-play game environment.

    2 April 2010

    Technical Line - Milestone method of revenue recognition codified in US GAAP
    Our Technical Line provides a summary of the key provisions of the consensus reached in EITF Issue 08-9 related to the milestone method of revenue recognition.

    23 December 2009

    Technical Line - Status update - Joint revenue recognition project
    Our Technical Line provides an update on the decisions the Boards have made on the joint revenue recognition project.

    25 September 2009

    Hot Topic - Changes in revenue recognition for tangible products that include software
    Our Hot Topic summarizes EITF Issue 09-3. This updated guidance is expected to significantly affect how entities account for revenue arrangements that contain both hardware and software elements.

    25 September 2009

    Hot Topic - Revisions to revenue recognition: multiple-element arrangements guidance finalized
    Our Hot Topic summarizes EITF Issue 08-1. EITF 08-1 updates the existing multiple-element arrangements guidance and is expected to significantly affect these entities with these arrangements.

    29 April 2009

    Technical Line - Revenue recognition project preliminary views
    Our Technical Line summarizes the initial decisions made in the Boards’ joint revenue recognition project, which has the potential to significantly change how and when many entities recognize revenue.

    10 April 2009

    Hot Topic - EITF consensus-for-exposure on the milestone method of revenue recognition
    Our Hot Topic outlines the consensus-for-exposure for EITF 08-9, “Milestone Method of Revenue Recognition.” Under the consensus-for-exposure, a vendor may make an accounting policy election to recognize arrangement consideration that is entirely contingent upon the achievement of a substantive milestone in the period in which the milestone is achieved.

    19 December 2008

    Hot Topic - Revenue recognition project- preliminary views
    Our Hot Topic discusses the FASB and the IASB discussion paper relating to their ongoing joint revenue recognition project. The Discussion Paper seeks comments on the Boards’ preliminary views on a single, asset-and-liability-based revenue recognition model that they believe will improve financial reporting within both US GAAP and IFRS.

    3 December 2008

    Hot Topic - EITF 08-1-Revenue arrangements with multiple deliverables
    Our Hot Topic discusses the consensus-for-exposure reached on EITF 08-1 on revenue recognition with multiple deliverables.

    13 August 2008

    Hot Topic - FASB-IASB Joint revenue recognition project update
    Our Hot Topic focuses on recent FASB and IASB discussions to update the guidance on revenue recognition.

    16 June 2008

    Hot Topic - FASB-IASB Joint revenue recognition project update
    Our Hot Topic focuses on the joint FASB and IASB project on revenue recognition.

    9 April 2008

    Hot Topic - Accounting for revenue arrangements for software as service vendors
    Our Hot Topic sets forth our views and observations relating to many of the accounting issues associated with SaaS arrangements, including specific examples illustrating the key concepts.