Revenue contracts

The IASB has issued a revised exposure draft, Revenue from Contracts with Customers.

The proposals retain the five-step approach to revenue recognition. An entity first identifies the contract with the customer and then the separate performance obligations in that contract. It then determines the transaction price and, if necessary, allocates that transaction price to each separate performance obligation. As the last step, the entity recognises revenue when it satisfies a performance obligation by transferring either a promised good or a promised service to a customer.