ASB releases revenue recognition draft
The Accounting Standards Board has released its exposure draft on changes to revenue recognition in order to provide an interim step before international standards are finalised
The draft sets out basic principals for revenue recognition for five different types of transaction – long term contractual performance, separation and linking of contractual arrangements, bill and hold arrangements, sales with right of return and presentation of turnover as principal or agent.
ASB Chairman, Mary Keegan, said that it became necessary to produce an interim step before the finalisation of a replacement for IAS 18 as some companies ‘have rather “pushed the envelope” in their recent reporting practices’.
Comments on the draft are requested until 30 May.