April Pitman, Project Manager, International Accounting Standards Board

CPA Australia, the Institute of Chartered Accountants in Australia, and the National Institute of Accountants were delighted to welcome April Pitman Project Manager, the IASB to present a comprehensive update of the project to develop a new joint standard for revenue recognition. (including where the project is going and specific application issues). This presentation was live streamed on Tuesday 2nd December and the recorded video is available for you to view below.

Background

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board are undertaking a project to develop a new joint standard for revenue recognition. In IFRSs, the new standard will replace the existing standards on revenue recognition, IAS 11 Construction Contracts and IAS 18 Revenue.

On 19 December 2008 the Boards published for public comment a discussion paper Preliminary Views on Revenue Recognition in Contracts with Customers.

In the discussion paper, the Boards propose a single revenue recognition model that can be applied consistently across a range of industries and geographical regions. Applying the underlying principle proposed by the Boards, an entity would recognise revenue when it satisfies its performance obligations in a contract by transferring goods and services to a customer. That principle is similar to many existing requirements. However, the Boards think that clarifying that principle and applying it consistently to all contracts with customers will improve the comparability and understandability of revenue for users of financial statements.