Project Update

Revenue from Contracts with Customers

Last updated on May 20, 2016. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.

(Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

*Project Objective
*Due Process Documents
*Tentative Board Decisions Reached to Date
*Next Steps
*Board/Other Public Meeting Dates
Contact Information

*Project Objective

On May 28, 2014, the Financial Accounting Standards Board (FASB), responsible for U.S. Generally Accepted Accounting Principles (U.S. GAAP), and the International Accounting Standards Board (IASB), responsible for International Financial Reporting Standards (IFRS), issued jointly a converged standard on the recognition of revenue from contracts with customers.

In June 2014, the FASB and IASB announced the formation of the Joint Transition Resource Group for Revenue Recognition (TRG). The objective of the TRG is to inform the Boards about potential implementation issues that could arise when companies and organizations implement the new standard. The TRG also provides stakeholders with an opportunity to learn about the new standard from others involved with implementation. The TRG does not issue guidance. Additional information about the TRG, including how to submit an implementation issue, can be found here.

The objective of the Board’s standard-setting activities related to Topic 606, Revenue from Contracts with Customers, is to address challenges identified by the TRG in implementing and applying the new revenue standard in certain areas.

*Due Process Documents

  1. On May 18, 2016, the Board issued an Exposure Draft of the proposed Accounting Standards Update, Technical Corrections and Improvements to Update 2014-09, Revenue from Contracts with Customers (Topic 606).
    • Download the Exposure Draft of the proposed Accounting Standards Update
  2. On May 9, 2016, the Board issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.
  3. On April 14, 2016, the Board issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.
  4. On March 17, 2016, the Board issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).
  5. On September 30, 2015, the Board issued (media advisory) an Exposure Draft of the proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The comment deadline was November 16, 2015.
    • Download the Exposure Draft of the proposed Accounting Standards Update.
  6. On August 31, 2015, the Board issued an Exposure Draft of the proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The comment deadline was October 15, 2015.
    • Download the Exposure Draft of the proposed Accounting Standards Update.
  7. On August 12, 2015, the Board issued (media advisory) Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.
  8. On May 12, 2015, the Board issued an Exposure Draft of the proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The comment deadline was June 30, 2015.
    • Download the Exposure Draft of the proposed Accounting Standards Update.

*Tentative Board Decisions Reached to Date (As of March 9, 2016)

Refer to the Summary of Tentative Board Decisions Reached to Date related to Revenue from Contracts with Customers.

*Next Steps

Technical Corrections and Improvements

The Board directed the staff to draft a proposed Accounting Standards Update for vote by written ballot.

Please refer to the current technical plan for information about the project timeline.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Boards' deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

March 9, 2016 Board Meeting—Deliberations on Technical Corrections and Improvements Related to the Disclosure of Remaining Performance Obligations
February 10, 2016 Board Meeting—Redeliberations on Narrow-Scope Improvements and Practical Expedients
January 20, 2016 Board Meeting—Agenda Decision and Deliberations for Technical Corrections and Improvements
January 6, 2016 Board Meeting—Update on Identifying Performance Obligations and Licensing
December 16, 2015 Board Meeting—Redeliberations on Principal versus Agent Considerations
October 5, 2015 Board Meeting—Redeliberations on Identifying Performance Obligations and Licensing
August 31, 2015 Board Meeting—Agenda Decision and Deliberations for Completed Contracts at Transition and Permission to Ballot for Narrow-Scope Improvements and Practical Expedients
July 29, 2015 Board Meeting—Permission to Ballot for Principal versus Agent Considerations and Deliberations for Estimating Gross Revenue as a Principal
July 9, 2015 Board Meeting—Redeliberations on the Deferral of the Effective Date
June 22, 2015 Board Meeting—Agenda Decision and Deliberations for Principal versus Agent (Reporting Revenue Gross versus Net)
April 1, 2015 Board Meeting—Permission to Ballot and Exposure Period for (1) Identifying Performance Obligations and (2) Licensing
April 1, 2015 Board Meeting—Agenda Decision and Deliberations for Effective Date
March 18, 2015 Board Meeting—Agenda Decision and Deliberations for Narrow Scope Improvements and Practical Expedients; Research Update for Gross versus Net
February 18, 2015 Board Meeting—Agenda Decision and Deliberations for (1) Identifying Performance Obligations and (2) Licensing

Contact Information

Mary Mazzella
Supervising Project Manager
msmazzella@fasb.org

Mark Barton
Practice Fellow
mfbarton@fasb.org

Nick Burgmeier
Practice Fellow
nburgmeier@fasb.org

Dan Drobac
Practice Fellow
ddrobac@fasb.org

Rob Moynihan
Practice Fellow
rmoynihan@FASB.org

Cullen Walsh
Assistant Director
cdwalsh@fasb.org