Project UpdatesRevenue Recognition—Joint Project of the FASB and IASBLast Updated: June 12, 2009 (Updated sections are indicated with an asterisk *)This project update summarizes the project activities and decisions of the FASB and IASB (the Boards). It was prepared by the staff and is for the information and convenience of the Boards’ constituents. All decisions of the Boards are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Boards become final only after extensive due process. Project Objective PROJECT OBJECTIVE The objective is to clarify the principles for recognizing revenue and to create a joint revenue recognition standard for US GAAP and IFRSs that companies can apply consistently across various industries and transactions. By developing a common standard that clarifies the principles for recognizing revenue, the boards aim to:
DUE PROCESS DOCUMENTS On December 19, 2008, the Boards published, for public comment, a Discussion Paper, Preliminary Views on Revenue Recognition in Contracts with Customers.
The Discussion Paper is open for public comment until June 19, 2009. Respondents should submit one comment letter to either the IASB or the FASB. The Discussion Paper includes questions related to the boards’ proposals. Interested parties may answer all or selected questions in the Discussion Paper or may comment on any other issue that the boards should consider in developing their initial views into an Exposure Draft of a joint revenue recognition standard. The Boards expect to publish the Exposure Draft in 2010. CONTACT INFORMATION
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