Heads Up: Boards issue guidance on revenue from contracts with customers
Detailed analysis of the new converged guidance
What are the key provisions of the new ASU on revenue recognition? This Heads Up discusses the key provisions of the new converted standard on revenue that was issued by the FASB and IASB, including differences from current U.S. GAAP.
The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
Steps for recognizing revenue
In applying the revenue model to contracts within its scope, an entity will perform the following five steps.
Below are links to resources that provide more details about revenue recognition accounting:
- Heads Up — Accounting for real estate sales under the new revenue standard
- Industry Spotlights on the impact of the new revenue standard
- Revenue news and publications