Tentative Board Decisions
Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.
Topic 606 pre-agenda research. The Board discussed certain aspects of the disclosure requirements for remaining performance obligations. The Board decided to add a practical expedient to the requirement to disclose remaining performance obligations for certain types of variable consideration. The Board also decided to make improvements to the qualitative disclosure requirement for remaining performance obligations (in paragraph 606-10-50-15).
An entity applying the practical expedient would not need to include the following types of variable consideration in the disclosure of remaining performance obligations (paragraph 606-10-50-13):
- Sales-based or usage-based royalties promised in exchange for a license of intellectual property
- Variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a distinct good or service that forms part of a single performance obligation and meets the criteria in paragraph 606-10-32-40.
The Board had previously directed the staff to draft a proposed Accounting Standards Update for vote by written ballot on technical corrections and improvements related to Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The Board instructed the staff to include these proposed amendments in that proposed Update.