Deloitte
Accounting Research Tool
Previous Section Next Section
...
2016

March 11, 2016 — Revenue — FASB Tentatively Decides to Expand Scope of Practical Expedient for Disclosures About Remaining Performance Obligations Under ASC 606

Accounting Journal Entry

Revenue —FASB Tentatively Decides to Expand Scope of Practical Expedient for Disclosures About Remaining Performance Obligations Under ASC 606

March 11, 2016 — At its March 9, 2016, meeting, the FASB continued deliberating potential amendments to the new revenue standard’s requirements in ASC 606-10-50-13 through 50-151 related to the disclosure of information about an entity’s remaining performance obligations. The Board tentatively decided to propose amendments that would:
  • Expand the scope of the practical expedient in ASC 606-10-50-14 for disclosures about an entity’s remaining performance obligations to include arrangements involving variable consideration under either of the following allocation models outlined in ASC 606:
    • Allocation of variable consideration — Certain arrangements (e.g., a series of goods or services) in which variable consideration is allocated entirely to one or more, but not all, performance obligations or distinct goods or services in accordance with ASC 606-10-32-40.
    • Sales-based and usage-based royalties — Royalties on a license of intellectual property that are recognized only when the subsequent sale or usage occurs in accordance with ASC 606-10-55-65.
  • Make improvements to the requirements in ASC 606-10-50-15 related to qualitative disclosures about an entity’s remaining performance obligations.

Footnotes

1
For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
2
FASB Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers.