A question of interpretation

How should an entity account for a profit-sharing arrangement that requires it to share 10% of taxable profit with its employees? How should an entity recognise revenue when there is uncertainty about the collection of that revenue? The first question was considered recently by the IFRS interpretations committee (IFRIC) and the second by the US emerging issues task force (EITF) in the context of the healthcare providers. IFRIC declined to issue an interpretation because the related standard is clear. The EITF did issue an interpretation (consensus), which changed US GAAP for one industry. The different approaches provide an interesting contrast in how