Revenue Recognition: Boards Decide on Contract Costs, Allocating Transaction Price and Sales-Based Royalties

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Date: Jan. 02, 2013

Financial Reporting Network

This podcast provides a high level summary of recent decisions reached at the December 2012 Joint FASB and IASB Board meeting.

The boards made tentative decisions related to costs of obtaining a contract, allocating the transaction price to separate performance obligations and constraining the amount of revenue recognized on licenses of intellectual property.

The boards also decided against making additional modifications to the revenue model to address specific concerns of the telecommunications and cable/satellite television industries.