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The FASB and IASB recently issued a revised exposure draft on revenue recognition after almost a year of redeliberations, with significant changes to the guidance originally proposed.
In addition to covering the revised proposal's major provisions, the webcast (at http://mcgladrey.com/images/media/ws_revised_revenue_recognition.wmv) addressed the approach required to comply with the core principle of the revised proposal including:
- Identify the contract with a customer
- Identify the separate performance obligations in the contract
- Determine the transaction price
- Allocate the transaction price to the separate performance obligations
- Recognize revenue when (or as) each performance obligation is satisfied