The FASB and IASB released their exposure draft of their proposed revenue recognition standards. From paragraphs IN8 and IN9 of the official document

In summary, the core principle [of revenue recognition] would require an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it receives, or expects to receive, in exchange for those goods or services.

To apply that principle, an entity would:

(a) identify the contract(s) with a customer;

(b) identify the separate performance obligations in the contract;

(c) determine the transaction price;

(d) allocate the transaction price to the separate performance obligations; and

(e) recognize revenue when the entity satisfies each performance obligation.

I haven’t had a chance to look and see if there are many surprises.  For now, let me just remind readers of the new terminology under the Accounting Standards Codification (ASC).  This document is a Proposed Accounting Standards Update (ASU), and when it is approved, it will substantially modify Topic 605 of the ASC, which covers revenue recognition.  But it will also make changes to a host of other Topics — read ‘em and weep!

 340-20 Other Assets and Deferred Costs—Capitalized Advertising Costs

 360-20 Property, Plant, and Equipment—Real Estate Sales

 430-10 Deferred Revenue—Overall

 470-40 Debt—Product Financing Arrangements

 605-15 Revenue Recognition—Products

 605-20 Revenue Recognition—Services

 605-25 Revenue Recognition—Multiple-Element Arrangements

 605-28 Revenue Recognition—Milestone Method

 605-30 Revenue Recognition—Rights to Use

 605-35 Revenue Recognition—Construction-Type and Production-Type Contracts

 605-45 Revenue Recognition—Principal Agent Considerations

 908-605 Airlines—Revenue Recognition

 910-605 Contractors—Construction—Revenue Recognition

 912-210 Contractors—Federal Government—Balance Sheet

 912-275 Contractors—Federal Government—Risks and Uncertainties

 912-605 Contractors—Federal Government—Revenue Recognition

 915-605 Development Stage Entities—Revenue Recognition

 922-430 Entertainment—Cable Television—Deferred Revenue

 926-430 Entertainment—Films—Deferred Revenue

 926-605 Entertainment—Films—Revenue Recognition

 926-845 Entertainment—Films—Nonmonetary Transactions

 928-430 Entertainment—Music—Deferred Revenue

 928-605 Entertainment—Music—Revenue Recognition

 932-605 Extractive Activities—Oil and Gas—Revenue Recognition

 940-605 Financial Services—Brokers and Dealers—Revenue Recognition

948-605 Financial Services—Mortgage Banking—Revenue Recognition

 952-340 Franchisors—Other Assets and Deferred Costs

 952-605 Franchisors—Revenue Recognition

 952-720 Franchisors—Other Expenses

 954-430 Health Care Entities—Deferred Revenue

 970-605 Real Estate—General—Revenue Recognition

 972-430 Real Estate—Common Interest Realty Associations—Deferred Revenue

 972-605 Real Estate—Common Interest Realty Associations—Revenue Recognition

 974-605 Real Estate—Real Estate Investment Trusts—Revenue Recognition

 976-310 Real Estate—Retail Land—Receivables

 976-605 Real Estate—Retail Land—Revenue Recognition

 978-310 Real Estate—Time-Sharing Activities—Receivables

 978-340 Real Estate—Time-Sharing Activities—Other Assets and Deferred Costs

 978-605 Real Estate—Time-Sharing Activities—Revenue Recognition

 980-605 Regulated Operations—Revenue Recognition

 985-605 Software—Revenue Recognition

Also, keep in mind that if this is passed, no one will ever refer to the particular ASU the way we do SFAS 13 or SFAS 157.  Instead, we simply have a revised codification.