Perspectives

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.

Key provisions

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.
 

Volume 21, Issue 14 | May 28, 2014

Steps for recognizing revenue

In applying the revenue model to contracts within its scope, an entity will perform the following five steps.

 

Learn more

Below are links to resources that provide more details about revenue recognition accounting:

 

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