Determining transaction price and identifying performance obligations are among the most challenging implementation issues in accounting for revenue recognition, according to recent guidance from the Financial Accounting Standards Board (FASB).
FASB issued an implementation Q&A in January on revenue recognition under Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The Q&A does not add or change any guidance for applying the standard, but it is intended to make it easier for users to find and use the resources that are already available. This initiative is part of FASB’s ongoing commitment to educate stakeholders on how to understand and implement new accounting standards.
