Accounting 

The New Publication Advises on Revenue Recognition Standards

In July 2019 Deloitte issued a new publication called “A Roadmap to Applying the New Revenue Recognition Standard (2019)” which provides guidance on accounting for revenue-related transactions under US GAAP.

It is a comprehensive guide to revenue recognition standard ASC 606 called “A Roadmap to Applying the New Revenue Recognition Standard (2019)” reflecting all subsequent updates of the standard made at a later stage. It can be accessed on iasplus.com.

The publication contains in extensive detail chapters on each of the five steps of the revenue recognition assessment:

Step 1: Identify the Contract

Step 2: Identify the Performance Obligations

Step 3: Determine the Transaction Price

Step 4: Allocate the Transaction Price to the Performance Obligations

Step 5: Determine When to Recognize Revenue

Also, it covers the topics of contract modifications, principal vs. agent considerations, licensing, contract costs, presentation and disclosure, sales of non-financial assets within the scope of ASC 610-20 as well as tax considerations.

Those looking for the differences between US GAAP ASC 606 and IFRS 15 will appreciate Appendix A included (pages 787 to 793) as well as Deloitte’s Q&A’s with references to the relevant extracts from the guidance.

Should you need further support with the interpretation and application of US GAAP or IFRS, our specialists are available to provide assistance.

The publication has 932 pages and is available here.

The article is part of dReport – October 2019, Accounting news.

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