8/20/2014

A transition-resource group for revenue recognition has discussed implementation issues for the accounting standard, which was issued in May. Issues discussed include determining and accounting for whether an entity is a principal or an agent in contracts for certain intangible goods, such as video gaming; whether to present certain items billed to customers, such as shipping and handling fees, as revenue or a reduction of costs; treatment of certain sales- and usage-based royalties and impairment of capitalized contract costs. The group has no power to issue guidance but is tasked with parsing implementation problems. Ultimately, the Financial Accounting Standards Board and the International Accounting Standards Board will decide which of the issues to take up.

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