Revised IASB proposals could affect the way income is
recognised, writes Nick Randall.
The International Accounting Standards Board (IASB) has issued a
revised exposure draft (ED) in response to feedback on its original
proposals. If finalised, it could affect how professional practices
recognise their income and, therefore, pay tax. The IASB received
more than 1,000 comment letters on the original ED. Many felt it
was unclear how to apply the proposed core principles in practice,
to both service and construction contracts.
Revised ED proposals
The core principle set out in the revised ED is consistent with
the original draft. It says: "an entity shall recognise
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 to in exchange for those goods and
services."
