FASB issues ASU No. 2010-17, Milestone Method of Revenue Recognition
April 30, 2010
The FASB has approved Accounting Standards Update (ASU) No. 2010-17 , Milestone Method of Revenue Recognition, which provides guidance concerning application of the milestone method of recognizing revenue for research and development arrangements which include payment provisions under which all or a portion of the consideration to be received by the vendor is contingent upon the achievement of certain events.
Please contact us if you have any questions regarding the disclosure requirements for such research and development arrangements, which include the accounting policy for recognition of milestone payments as revenue and the specific details of each such arrangement.