ASC 6060

1. To meet that objective, the new guidance establishes the following core principle:
Recognize revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.
A company would apply the following five steps to achieve the core principle:
HOW WILL THE NEW STANDARD CHANGE CURRENT GAAP?

2. WHO WILL BE AFFECTED BY THE NEW GUIDANCE?
The new guidance on revenue recognition affects any reporting organization that either
enters into contracts with customers to transfer goods or services or enters into contracts for
the transfer of nonfinancial assets unless those contracts are within the scope of other
standards (for example, insurance contracts or lease contracts).
Revenue Recognition—Joint Project of the FASB and IASB
Last updated on June3, 2014. Please refer to the Accounting
Standards Updates Issued page for the final ASU.
(Updated sections are indicated with an asterisk *)
This project update summarizes the project activities and decisions of the FASB and IASB
(the Boards). It was prepared by the staff and is for the information and convenience of
the Boards’ constituents. All decisions of the Boards are tentative, may change at future
Board meetings, and do not change current accounting and reporting requirements.
Decisions of the Boards become final only after extensive due process.
*Due Process Documents
Project Objective and Summary of the Proposed Model
Outreach/Field Work
Decisions Reached at the Last Meeting
Summary of Decisions Reached to Date
Next Steps
Board/Other Public Meeting Dates
Related FASB Documents
Background Information
*Contact Information
*DUE PROCESS DOCUMENTS
On May 28, 2014, the Boards issued a converged standard on revenue recognition from
contracts with customers, ASU 2014-09 (Topic 606) and IFRS 15.
 Download ASU 2014-09, Revenue from Contractswith Customers
 Download IFRS 15, Revenue fromContracts with Customers
 Read the press release introducing the final standard.
 Read the FASB In Focus which providesa summary of the final standard.
On November 14, 2011, the Boards published, for public comment, an Exposure Draft,
Revenue from Contracts with Customers. The Exposure Draft was open for public comment
until March 13, 2012. On January 4, 2012, the Board published, for public comment, an

3. Exposure Draft, Revenue from Contracts with Customers—Proposed Amendments to the
FASB Accounting Standards Codification®. The Exposure Draft was open for public
comment until March 13, 2012.
 Download the FASB Exposure Draft.
 Download the Proposed Amendments to the FASB Accounting Standards Codification
 Download the IASB Exposure Draft, which is the same except for minor differencesin spelling,
style, and format.
 Read the press release introducing the Exposure Draft.
 Read the FASB In Focus and the IASB Snapshot, which provide summaries of the proposals
contained in the Exposure Draft.
 Listen to a brief podcast recordingof FASB Board Member Russ Golden discussing the objectives,
basic elements, and expectedimpact of the proposals containedin the Exposure Draft.
 Download the FASB staff’s summary comparisondocument (updated on March 15, 2012), Revenue
recognition—Potential changes to U.S. GAAP.
 Listen to the joint webcast of the FASB and IASBaddressing frequently asked questions on the
Exposure Draft.
 Read the comment letters on the Exposure Draft. View the alphabetical index list of comment
letters.
 Read the Exposure Draft Comment Letter Summary.
On June 24, 2010, the Boards published for public comment an Exposure Draft, Revenue
from Contracts with Customers. The Exposure Draft was open for public comment until
October 22, 2010.
 Download the FASB Exposure Draft.
 Download the IASB Exposure Draft, which is the same except for minor differencesin spelling,
style, and format.
 Read the press release introducing the Exposure Draft.
 Read the FASB In Focus and the IASB Snapshot, which provide summaries of the proposals
contained in the Exposure Draft.
 Listen to a brief podcast recordingof FASB Board Member Leslie Seidman discussing the objectives,
basic elements, and expectedimpact of the proposals containedin the Exposure Draft.
 Read comment letters on the Exposure Draft.

4.  Read the Exposure Draft Comment Letter Summary.
 Read the following summaries of the public roundtables held by the FASB and IASBto discuss the
Exposure Draft:
o Minutes for the November 4, 2010 Roundtable—AM Session
o Minutes for the November 4, 2010 Roundtable—PM Session
o Minutes for the November 23, 2010 Roundtable
On December 19, 2008, the Boards published for public comment a Discussion
Paper, Preliminary Views on Revenue Recognition in Contracts with Customers.
 Download the FASB Discussion Paper.
 Download the IASB Discussion Paper, which is the same except for minor differencesin spelling,
style, and format.
 Read the press release introducing the Discussion Paper.
 Read a snapshot of the Boards’ preliminary views in the Discussion Paper.
For the most recent proposals, please see the Summary of Decisions Reached to Date.
PROJECT OBJECTIVE AND SUMMARY OF THE PROPOSED MODEL
Revenue is a crucial number to users of financial statements in assessing an entity’s
financial performance and position. However, revenue recognition requirements in U.S.
generally accepted accounting principles (GAAP) differ from those in International
Financial Reporting Standards (IFRSs), and both sets of requirements need improvement.
U.S. GAAP comprises broad revenue recognition concepts and numerous requirements for
particular industries or transactions that can result in different accounting for economically
similar transactions. Although IFRSs have fewer requirements on revenue recognition, the
two main revenue recognition standards, IAS 18, Revenue, and IAS 11, Construction
Contracts, can be difficult to understand and apply. In addition, IAS 18 provides limited
guidance on important topics such as revenue recognition for multiple-element
arrangements.
Accordingly, the Financial Accounting Standards Board (FASB) and the International
Accounting Standards Board (IASB) initiated a joint project to clarify the principles for
recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRSs
that would:
1. Remove inconsistencies and weaknesses in existing revenue requirements.
2. Provide a more robust framework for addressing revenue issues.

5. 3. Improve comparability of revenue recognition practices across entities, industries,
jurisdictions, and capital markets.
4. Provide more useful information to users of financial statements through improved
disclosure requirements.
5. Simplify the preparation of financial statements by reducing the number of requirements to
which an entity must refer.
To meet those objectives, the FASB and the IASB are proposing amendments to the FASB
Accounting Standards Codification® and to IFRSs, respectively.
For additional information and a summary of the proposed model, please see the FASB In
Focus or the Exposure Draft.
OUTREACH/FIELD WORK
The FASB and the IASB are reaching out to a broad audience of users, preparers, and
auditors of financial statements to hear their views about the revised revenue recognition
proposals intended to improve and converge the financial reporting requirements for
revenue (and some related costs) from contracts with customers.
Read a summary of outreach undertaken by the staff and Boards.
Read a summary of user feedback undertaken by the staff and Boards.
Click here for an overview of the outreach completed to date as of the close of the comment
period.
Public Roundtables
As part of the outreach effort on the November 2011 revised Exposure Draft, the Boards
hosted a series of public roundtables in April and May of 2012. The roundtable that was held
on May 8, 2012, in Salt Lake City, Utah, was specifically devoted to how the proposals in the
revised Exposure Draft will affect U.S. nonpublic entity stakeholders.
Tokyo—April 4, 2012
Listen to the audio recording
London—April 20, 2012
Listen to the audio recording
Norwalk—April 26, 2012
Listen to the audio recording

6. Salt Lake City—May 8, 2012
Listen to the audio recording
Other Outreach Activities
To date, the boards have already hosted a number of workshops, webcasts and conferences
on the revised Exposure Draft and have held a number of meetings with auditors, preparers,
regulators and users. During these outreach activities, the staff sought to:
1. Understand if the proposals are clear and can be applied in a way that effectively
communicates the economic substance of transactions.
2. Identify any unintended consequences.
3. Ensure the staff is aware of significant changes to current practice.
4. Educate constituents about the proposals and basis for the Boards conclusions.
If you would like to participate in future outreach efforts, please contact the staff.
 Listen to a brief podcast recordingof FASB Board Member Russ Golden discussing the objectives,
basic elements, and expectedimpact of the proposals containedin the Exposure Draft.
 Listen to the joint webcast of the FASB and IASBdiscussing the Exposure Draft.
 Download the FASB staff’s summary comparisondocument, Revenue recognition—Potential
changes to U.S. GAAP.
 Listen to a webcast the FASB, IASB, and the CFA Institute presented about the revisedproposalson
revenue recognitionand how the proposalsmay affect investors.
 Listen to the joint webcast of the FASB and IASBaddressing frequently askedquestions on the
Exposure Draft.
WHAT IS THE JOINT TRANSITION RESOURCE GROUP (TRG)?
On June 3, 2014, the FASB and the IASB announced the formation of the Joint Transition
Resource Group for Revenue Recognition (TRG).
The TRG will inform the IASB and the FASB about potential implementation issues that
could arise when companies or organizations implement the new standard. The TRG also
will provide stakeholders with an opportunity to learn about the new standard from others
involved with implementation. The TRG will not issue guidance.
Members of the TRG include financial statement preparers, auditors and users representing
a wide spectrum of industries, geographical locations and public and private companies and

7. organizations.
The TRG met twice in 2014, four times in 2015, and has met once in 2016 (with three total
meetings scheduled in 2016). All meetings are public and co-chaired by the vice chairmen of
the FASB and the IASB. The 2016 TRG meetings are FASB only, with the IASB participating
as an observer.
HOW CAN I SUBMIT AN ISSUE FOR THE TRG TO CONSIDER?
Any stakeholder can submit a potential implementation issue for discussion at TRG
meetings. The FASB and the IASB will evaluate each submission and prioritise the issues for
discussion at TRG meetings.
More information about the TRG, including instructions for submitting a potential
implementation issue, is available on the FASB’s website.