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FASB Proposes Changes to Deferred Revenue in Business Combinations

February 15, 2019

The Financial Accounting Standards Board (FASB) issued a proposed accounting standards update on the recognition and measurement of deferred revenue in business combinations. The proposed update would clarify when acquiring organizations should recognize a contract liability in a business combination. Under the proposal, an organization should recognize deferred revenue from acquiring another organization if there’s an unsatisfied performance obligation for which the acquired organization has been paid by the customer. Comments are due April 30, 2019. Read more at the FASB website.