FASB and IASB to re-expose revenue recognition proposals
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) will re-expose their revised proposals for a common revenue recognition standard. The boards intend to re-expose their work in the third quarter of 2011 for a comment period of 120 days.
Re-exposing the revised proposals will provide interested parties with an opportunity to comment on revisions the boards have undertaken since the publication of an exposure draft on revenue recognition in June 2010.
Specifically, the Boards plan to invite feedback on the following topics:
- The extent to which the revised requirements are understandable and the drafting of the requirements has not created unintended consequences for specific contracts or industries
- A few specific aspects of the revised requirements.
It was the unanimous view of the boards that while there was no formal due process requirement to re-expose the proposals it was appropriate to go beyond established due process given the importance of the revenue number to all companies and the need to take all possible steps to avoid unintended consequences.
