official news release, this new exposure draft addresses concerns raised in the 1000+ comment letters received in response to the first exposure draft. In particular, this exposure draft:

  • adds guidance on how to determine when a good or service is transferred over time;
  • simplifies the proposals on warranties;
  • simplifies how an entity would determine a transaction price (including collectibility, time value of money, and variable consideration);
  • modifies the scope of the onerous test to apply to long-term services only;
  • adds a practical expedient that permits an entity to recognise as an expense costs of obtaining a contract (if one year or less); and
  • provides exemption from some disclosures for non-public entities that apply US GAAP.

I hope to read through this new draft and provide comments here in the next week or so, particularly in relation to the dissenting opinion written by board member Tom Linsmeier starting in paragraph B371. But for now, I just wanted to draw attention to this new exposure draft and invite you to give it a careful read and post any comments you might have.  Happy reading!]]>