AccountingLink

    Revenue recognition

    8 August 2016

    Financial Reporting Developments - Revenue from contracts with customers (ASC 606)
    We have updated our Financial reporting developments (FRD) publication, Revenue from contracts with customers (ASC 606), to reflect all of the amendments to the new revenue standard the Financial Accounting Standards Board (FASB) has finalized to date, along with topics on which the members of the Transition Resource Group for Revenue Recognition reached general agreement. It also discusses our views on certain topics, including those that are based on our understanding of the views of the FASB and/or its staff and the staff of the Securities and Exchange Commission (SEC). Because the FASB’s new standard affects more than just revenue, this publication also updates our guidance on applying the new accounting for costs an entity incurs to obtain and fulfill a contract to provide goods and services to customers (i.e., ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers) and discusses the new model for the measurement and recognition of gains and losses on the sale of certain nonfinancial assets, such as property and equipment, including real estate (i.e., ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets). Our publication also highlights significant differences between the FASB’s new revenue standard and the International Accounting Standards Board’s (IASB) new revenue standard.

    5 August 2016

    Comment letter - FASB proposal on clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets
    In our comment letter, we supported the FASB’s objective to clarify the guidance on how to account for derecognition of nonfinancial assets and in substance nonfinancial assets. We believe the proposed ASU would reduce the cost and complexity of accounting for the derecognition of nonfinancial assets by aligning it further with the accounting for the derecognition of a business. Further, the proposed ASU would result in the remeasurement of any retained noncontrolling interest to fair value, which may lead to a higher risk of future impairment and may raise further questions regarding the technical merits of recording gains on retained interests.

    29 June 2016

    Comment letter - FASB proposal on technical corrections and improvements to its revenue standard
    In our comment letter, we support the FASB’s proposal to address feedback received from stakeholders and to make other improvements to its new revenue standard. Overall, we believe that the proposed amendments would address many of the concerns raised by constituents, provide additional clarity and improve consistency in application. We also recommend additional clarifications.

    9 June 2016

    Technical Line - Accounting for cloud computing arrangements as software licenses or service contracts
    New US GAAP guidance on how customers in cloud computing arrangements determine whether the arrangement includes a software license went into effect for all calendar-year entities at the beginning of this year. Our publication discusses the new guidance, along with whether customers in cloud computing arrangements that do not include software licenses should capitalize or expense implementation and other up-front costs that relate to such arrangements.

    9 June 2016

    To the Point - Clarifying the accounting for the derecognition of nonfinancial assets and in substance nonfinancial assets
    The FASB proposed clarifying the guidance on how to account for the derecognition of nonfinancial assets and in substance nonfinancial assets once an entity adopts the new revenue recognition guidance. The proposal also would define what constitutes an in substance nonfinancial asset. Comments are due by 5 August 2016.

    19 May 2016

    To the Point - FASB proposes technical corrections and improvements to the new revenue standard
    The FASB proposed nine technical corrections and improvements on narrow aspects of the guidance issued in Accounting Standards Update (ASU) 2014-09. The proposal would (1) add practical expedients and a disclosure requirement for remaining performance obligations, (2) clarify an example on contract modifications, (3) align the cost capitalization guidance for private and public funds and (4) update the guidance on accounting for onerous construction- and production-type contracts. The proposal would also clarify certain guidance on costs and the scope of the new standard. Comments are due by 2 July 2016.

    10 May 2016

    To the Point - FASB issues narrow-scope amendments and practical expedients for its revenue standard
    The FASB issued final amendments to its new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments address implementation issues discussed by the Joint Transition Resource Group for Revenue Recognition created by the FASB and the IASB and are intended to reduce the cost and complexity of applying the new revenue standard.

    21 April 2016

    Joint Transition Resource Group for Revenue Recognition items of general agreement
    We have updated our summary of issues on which members of the TRG generally agreed to include the April 2016 meeting in which only the FASB TRG participated. While the TRG members’ views are non-authoritative, entities should consider them as they implement the new standards. For more information about these issues and issues the TRG discussed but did not reach general agreement on, see our To the Point publications on TRG meetings on EY AccountingLink.

    20 April 2016

    To the Point - FASB Transition Resource Group for Revenue Recognition discusses five more implementation issues
    Members of the FASB Transition Resource Group for Revenue Recognition (FASB TRG) discussed five more implementation issues stakeholders have raised about the new revenue standards and reached general agreement on several of them. The FASB will need to consider whether any further action is needed to address the issues on which the members of the FASB TRG did not reach general agreement. They involved considering “class of customer” when evaluating whether a material right exists and scoping of asset management fees from incentive-based capital allocation arrangements, such as carried interest arrangements. Our publication includes a list of questions and answers on which FASB TRG members reached general agreement.

    15 April 2016

    To the Point - FASB amends the licenses and performance obligations guidance in its new revenue standard
    The FASB issued final amendments to clarify the guidance on accounting for licenses of intellectual property (IP) and identifying performance obligations in its new revenue recognition standard. The amendments clarify how an entity should evaluate the nature of its promise in granting a license of IP and when a promised good or service is distinct within the context of a contract. The amendments also allow entities to disregard goods or services that are immaterial in the context of a contract.

    18 March 2016

    To the Point - FASB issues amendments to the principal versus agent guidance in its new revenue standard
    The FASB issued final amendments to the principal versus agent guidance in its new revenue standard that clarify how an entity should identify the unit of accounting for the principal versus agent evaluation and apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent, revise existing examples and add new ones.

    16 November 2015

    Comment Letter - FASB proposal on narrow scope improvements and practical expedients for its revenue standard
    In our comment letter, we supported the FASB’s proposal to clarify the guidance in its new revenue standard on collectibility, presentation of sales and similar taxes, noncash consideration and transition. Overall, we believe that the proposed clarifications would improve consistency and, in many cases, provide a practical approach to applying the new standard. We also recommended additional clarifications.

    10 November 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition addresses more implementation issues
    Members of the Joint Transition Resource Group for Revenue Recognition (TRG) addressed four more implementation issues stakeholders have raised about the new revenue standards and reached general agreement on many questions. TRG members expressed diverse views on certain questions related to restrictions and renewals of licenses of intellectual property. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    15 October 2015

    Comment Letter - FASB proposal to clarify the principal versus agent guidance in the new revenue standard
    In our comment letter, we supported the FASB’s proposal to clarify the principal versus agent guidance in its new revenue standard and further supported the decision by the FASB and the IASB to propose converged amendments to this guidance. Overall, we believe that the proposed amendments would enhance the operability of the standard and result in more consistent application across entities, although significant judgment would still be required. We also recommended additional clarifications.

    8 October 2015

    To the Point - Amending new revenue guidance on licenses, performance obligations would affect life sciences entities
    This publication focuses on how life sciences entities would be affected by the FASB’s amendments to its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    8 October 2015

    To the Point - Amending new revenue guidance on licenses, performance obligations would affect M&E entities
    This publication focuses on how media and entertainment entities would be affected by the FASB’s amendments to its new revenue recognition guidance on licenses of intellectual property and identifying performance obligations.

    13 August 2015

    To the Point - FASB defers the new revenue standard by one year
    The FASB issued an Accounting Standards Update to defer by one year the effective date of its new revenue recognition standard and allow early adoption as of the original public entity effective date.

    29 July 2015

    Technical Line - Applying the new revenue recognition standard to sales of real estate
    The new revenue recognition standard eliminates the existing guidance in ASC 360-20, Real Estate Sales, for sales of real estate. Our Technical Line publication discusses the implications and compares how entities will account for several common real estate transactions under the new revenue standard with what they do under today’s real estate sales guidance.

    14 July 2015

    To the Point - Joint Transition Resource Group for Revenue Recognition discusses additional 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 had differing perspectives on certain issues related to the application of the constraint on estimates of variable consideration and whether certain contracts should be considered completed at transition. Our publication includes a list of questions and answers on which TRG members reached general agreement.

    16 June 2015

    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.

    15 June 2015

    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.

    29 May 2015

    Comment letter - FASB’s proposal to defer the effective date of the new revenue recognition standard
    In our comment letter, we supported the FASB’s proposal to defer the effective date of the new standard by one year and to allow entities to early adopt the standard as of the original public entity effective date.

    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.

    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.

    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 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.

    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. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 airlines entities. This publication supplements our Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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 Financial reporting developments publication, Revenue from contracts with customers (ASC 606) (SCORE No. BB3043), 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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.

    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.