Joint Transition Resource Group Preps Agenda for Initial Meeting
Following the creation of its Joint Transition Resource Group for Revenue Recognition (“the Group”) last month, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) are preparing for the advisory panel’s first meeting. Scheduled for July 18th, the meeting’s agenda will cover four issues identified by the boards. Based on feedback from companies, auditors, investors and regulators, the issues addressed during the meeting include:
- Calculating intangible goods and services revenue;
- Modifying revenue for additional fees and charges;
- Including royalties and intellectual property licenses into a revenue amount; and
- Incorporating amortization or write-down expenses into a revenue amount for long-term contracts.
Formed shortly after FASB’s Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, and IASB’s IFRS 15, Revenue from Contracts with Customers, were released, the Group’s goal is to address concerns regarding the standards before they go into effect in the next two-and-half years. ASU No. 2014-09 and IFRS 15 set up identical methods for reporting revenue in U.S. GAAP and IFRS, and are considered the board’s most significant accomplishment from their 12-year international convergence project.
Chaired by FASB Vice Chairman James Kroeker and IASB Vice Chairman Ian Mackintosh, the Group is scheduled to meet again on October 31st and has four meetings set for next year
Topics: Accounting Standards Update, Advisory, Audit, Financial Accounting Standards Board "FASB", intangible goods, Intellectual Property, International Accounting Standards Board "IASB", investors, Joint Transition Resource Group for Revenue Recognition