CA NeWs Beta*: IASB and FASB to Re-Expose Revenue Recognition Proposals

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Wednesday, June 15, 2011

IASB and FASB to Re-Expose Revenue Recognition Proposals

IASB and FASB to Re-Expose Revenue Recognition Proposals
NORWALK, Conn.--(BUSINESS WIRE)--The International Accounting
Standards Board (IASB) and the US-based Financial Accounting Standards
Board (FASB) agreed today to re-expose their revised proposals for a
common revenue recognition standard. Re-exposing the revised proposals
will provide interested parties with an opportunity to comment on
revisions the boards have undertaken since the publication of an
exposure draft on revenue recognition in June 2010.

It was the unanimous view of the boards that while there was no formal
due process requirement to re-expose the proposals it was appropriate
to go beyond established due process given the importance of the
revenue number to all companies and the need to take all possible
steps to avoid unintended consequences.

Consequently, the boards intend to re-expose their work in the third
quarter of 2011 for a comment period of 120 days.

Commenting on the decision, Sir David Tweedie, Chairman of the IASB said:

It is important that we get this right, first time. That is why the
boards and staff have undertaken an unprecedented level of outreach to
get us to this point, and why we are keen to treble-check that our
conclusions are robust and can be implemented with minimal disruption.

Leslie Seidman, Chairman of the FASB, said:

Given the prominent role of revenue in financial statement analysis,
the boards decided that it would be appropriate to re-expose the
proposed standard, and afford our stakeholders the opportunity to
review the changes in context.

Further details will be available shortly from the revenue recognition
project sections of the IASB and FASB websites.

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