Revenue

Current Status Next Steps

Exposure Draft is being developed.

The AcSB plans to issue the Exposure Draft in the first half of 2019.

BACKGROUND

The Accounting Standards Board (AcSB) has consulted with stakeholders about its relative priorities for Part II as per its 2017-2018 Annual Plan. As part of this consultation, the AcSB conducted a survey for stakeholders who account for revenue using Part II or Part III of the Handbook.

(Read more)

The results of this survey identified Section 3400, Revenue, in Part II as an area of concern, with guidance pertaining to the following topics noted as being insufficient and leading to diversity in practice:

  • bill-and-hold arrangements;
  • multiple-element arrangements;
  • percentage of completion method;
  • reporting revenue gross or net; and
  • upfront non-refundable fees/payments.

This project proposes to provide additional guidance on these topics.

(Hide)


PROJECT NEWS & DECISION SUMMARIES

AcSB Decision Summary – July 17, 2018
The Board approved a project to address stakeholders’ issues about insufficient guidance on accounting for revenue in Section 3400, Revenue, in Part II of the Handbook. The Board plans to propose additional guidance on the following topics:

  • bill-and-hold arrangements;
  • multiple-element arrangements;
  • percentage of completion method;
  • reporting revenue gross or net; and
  • upfront non-refundable fees/payments.

In parallel with developing the proposed guidance, the Board will continue to examine the need for further improvements, including an assessment of retaining the current risk-and-rewards model.

The Board will consult its Private Enterprise Advisory Committee and Not-for-Profit Advisory Committee in developing the proposals. The Board plans to issue an exposure draft in the first half of 2019.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.