IFRS.FASB 2013 Convergence Update

Rev Recognition – Oct 14, 2012 DT “IFRS Proj. Insights

Target timeline: Required for period starting on January 1, 2015 – with retrospective application (may have reliefs)

·      Key words: Concept of control. Performance obligation
        Considerations:

• ·         Items currently unbundled may not correspond to ‘distinct’ G&S under the proposed model
• ·         Allocating revenue between performance obligations ay result in different profile
• ·         May need to defer separately priced warranty
• ·         Comp structure, debt covenants, IT