WG 66 Revenue Recognition

Chairman: Tuan Syed Ahmad Taufik Albar; Project Manager: Ms. Tay Choon Ling

WG 66 was set up to review IASB's Discussion Paper on Revenue Recognition. The objective of the IASB and the US Financial Accounting Standards Board (FASB) is to improve the existing guidance in both IFRSs and US GAAP by developing a single revenue model that can be applied consistently regardless of industry. Applying the underlying principle proposed by the boards, a company would recognise revenue when it satisfies a performance obligation by transferring goods and services to a customer as contractually agreed. That principle is similar to many existing requirements and the boards expect that many transactions would remain unaffected by the proposals. However, clarifying that principle and applying it consistently to all contracts with customers would improve the comparability and understandability of revenue for users of financial statements.