Responses to IASB Documents for Comment
IFRS 15 Revenue from Contracts with Customers
Exposure Draft – Clarifications to IFRS 15 – July 2015
On October 27, 2015, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in July 2015. The letter supports the narrow-scope amendments proposing clarifications to and transition relief for IFRS 15 Revenue from Contracts with Customers. The letter commends both the IASB and the FASB for taking action to support the interpretation of the significant new revenue standard (i.e., IFRS 15 and the Accounting Standards Update No.2014-09 Revenue from Contacts with Customers (Topic 606)) that will result in a more consistent application globally. The letter notes that it is important for both Boards to continue to focus on the goal of a common basis of reporting revenue. Accordingly, the letter provides some recommendations to help achieve this goal, while enabling both Boards to finalize the proposed amendments without delay so that preparers can focus on implementing the new revenue standard. Read the AcSB letter posted by the IASB.
Exposure Draft – Effective Date of IFRS 15 (Proposed amendments to IFRS 15) – May 2015
On June 30, 2015, the AcSB submitted a comment letter responding to the IASB's Exposure Draft issued in May 2015. The letter strongly supports the proposal to defer the effective date of IFRS 15, by one year, to annual reporting periods beginning on or after January 1, 2018, while retaining the ability for entities to apply the standard early. Read the AcSB letter posted by the IASB.
Exposure Draft – Revenue from Contracts with Customers – November 2011
On March 27, 2012 the AcSB submitted a comment letter responding to the IASB's Exposure Draft issued in November 2011. The letter supports the proposed new standard. However, it suggests changes to emphasize that revenue should be recognized when an entity receives a right to payment for goods or services transferred to a customer. The letter expresses concern that the proposed disclosure requirements and, in particular, the proposed interim disclosures, will be excessive. It also expresses disagreement with the proposed requirements for onerous contracts, constraint on recognizing variable consideration and presentation of credit losses. Read the AcSB letter posted on the FASB’s website.
Exposure Draft – Revenue from Contracts with Customers – June 2010
On October 22, 2010, the AcSB submitted a comment letter responding to the Exposure Draft issued jointly by the IASB and FASB. The letter commends the Boards on their efforts to produce a common, single standard for revenue recognition. However, the letter expresses concern about the main principle and proposes that revenue should be recognized when the entity has an unconditional right to consideration for the provision of goods or services in accordance with a contract with a customer. Read the AcSB letter posted by the IASB.