061 An issue of “Understandings of Revenue from Contracts with Customers”
Accounting Standards Board issued on January 20, 2011 “Understandings of Revenue from Contracts with Customers”, collecting opinions till March 28, 2011.
It reports 9 issues such as ①its scope, ②recognition, ③measurement, ④onerous performance obligation, ⑤contract costs, ⑥presentation and notes.
The following ideas are the basis to understand the issues. “An entity recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the considerations that it receives, or expects, in exchange for those goods or services.” This has been proposed as “Revenue from Contracts with Customers (Exposure Draft)”in the name of International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB).
“To depict” and “in an amount that reflects the considerations” affects to recognition of revenue and measurement method. These are issues that Japanese accountants are not familiar with, therefore it will take us a little bit of time to understand the concept.
