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The IASB and FASB are consulting on a discussion paper setting out a joint approach for the recognition of revenue.
Boards propose that a company would recognise revenue when it satisfies a performance obligation by transferring goods and services to a customer as contractually agreed.
That principle is similar to many existing requirements and the boards expect that many transactions would remain unaffected by the proposals. However, clarifying that principle and applying it consistently to all contracts with customers would improve the comparability and understandability of revenue for users of financial statements.
Deadline for comment is