BC259 The 2010 Exposure Draft proposed that an entity would recognise revenue at the amount that the entity expects to receive from the customer. In other words, the customer's credit risk would be reflected in the measurement of the transaction price allocated to the performance obligations in the contract.
BC260 Many respondents to the 2010 Exposure Draft commented specifically about the proposed requirements for customer credit risk. Although some respondents agreed with the proposal that the transaction price should reflect the customer's credit risk, nearly all respondents (including preparers, users of financial statements and securities regulators) expressed concerns about applying that concept in practice. In particular, many users of financial statements commented that they would prefer revenue to be measured at the 'gross' amount so that revenue growth and receivables management (or bad debts) could be analysed separately. Those users of financial statements indicated that th
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