Last updated on March 30, 2021. This issue has been removed from the technical agenda and subsumed into the Board’s Post Implementation Review (PIR) process for Topic 606, Revenue from Contracts with Customers.
(Sections updated on the date above are indicated with an asterisk *)
Objective:The objective of this project was to reduce diversity in the accounting for revenue recognition for contract modifications of licenses of intellectual property (IP).
Background:On May 8, 2019, the Board decided to add to the Emerging Issues Task Force (EITF) agenda a project on contract modification of licenses of IP. The scope of the project includes:
- Accounting for contract modifications where the contract term for existing rights is extended, while also adding rights
- Accounting for the revocation of licensing rights (including conversion of term software licenses to software as a service (SaaS) arrangements)
Decisions Reached at Last Meeting (March 24, 2021):
The Board discussed the project direction based on the recommendation of the Emerging Issues Task Force (EITF) at its March 11, 2021 meeting. The Board removed the project from its technical agenda and will consider the issue as part of the Post-Implementation Review (PIR) process of Topic 606, Revenue from Contracts with Customers.
The following are links to the minutes for each meeting. To view Board meetings and handouts from the past 90 days, click here.
Board Meeting—The Board decided to remove this project from the technical agenda and to consider the issues as part of the Post Implementation Review (PIR) process of Topic 606, Revenue from Contracts with Customers.
|March 24, 2021*||Board Meeting—The Task Force recommended moving this project back to the Board for consideration.|
|March 11, 2021*||EITF Meeting—The Task Force recommended moving this project back to the Board for consideration.|
|November 7, 2019||EITF Meeting—The Task Force did not reach a consensus-for-exposure.|
|June 13, 2019||EITF Meeting—The staff held an education session with the EITF members.|
|May 8, 2019||Board Meeting—The Board added the project to the EITF agenda.|
Postgraduate Technical Assistant
The staff has prepared this summary for information purposes only. Any Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.