One of the goals of the FASB and IASB in the revenue project was to provide financial statement users with more useful information through improved disclosures. ASC 606-10-50-1 outlines the objective of the revenue standard’s disclosure requirements as follows:
Quoted from ASC 606-10-50-2.
See footnote 1.
IAS 34 provides the interim disclosure requirements under IFRS Accounting Standards. In addition, IFRS 15 amended IAS 34 to require entities to disclose information about disaggregated revenue from contracts with customers during interim periods. IFRS 15 does not require entities to disclose information about contract balances and remaining performance obligations on an interim basis as required under U.S. GAAP. For more information about differences between U.S. GAAP and IFRS Accounting Standards on revenue-related topics, see Appendix A.
This column represents the interim disclosure requirements in years after the year of adoption of the revenue standard.
At a minimum, a nonpublic entity must disclose revenue that is disaggregated in accordance with the timing of transfer of goods or services (e.g., goods transferred at a point in time and services transferred over time) and qualitative information about how economic factors affect revenue and cash flows.
The election available to nonpublic entities applies only to the requirement to disclose information about why the methods used to recognize revenue over time provide a faithful depiction of the transfer of goods or services to a customer. Nonpublic entities are still required to disclose the information about the methods used to recognize revenue over time in accordance with ASC 606-10-50-18(a).
This includes the methods, inputs, and assumptions used in an entity’s assessment.