The model was proposed to be applied to all contracts

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Unformatted text preview: ccount for any overlift or underlift balances, including what measurement base to apply to any resulting asset or liability. it satisfies a performance obligation by transferring control of promised goods or services to a customer. The model was proposed to be applied to all contracts with customers except leases, financial instruments, insurance contracts and non-monetary exchanges between entities in the same line of business to facilitate sales to customers other than the parties to the exchange. The Boards redeliberated the proposals contained in the exposure draft during the first half of 2011 and agreed tentatively to revise a number of aspects of the proposals, including the criteria for identifying separate performance obligations, the guidance on transfer of control, and the measurement of the transaction price, particularly for arrangements including uncertain consideration. The Boards concluded that, although there was no formal due process requirement to reexpose the proposals, it was appropriate to go beyond established due process given the importance of this topic to all entities. A revised exposure draft is expected in the second half of 2011. Future developments A new standard on revenue recognition is expected The IASB and the US Financial Accounting Standards Board are working on a joint project to develop a comprehensive set of principles for revenue recognition. An exposure draft published in 2010 proposed a single revenue recognition model in which an entity would recognise revenue as 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. Impact of IFRS: Oil and Gas 17 2011 KPMG International Cooperative ("KPMG International"). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2011 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. 18 Impact of IFRS: Oil and Gas 7 Reserves reporting There is no specific IFRS reporting requirement on reserves, although many oil and gas companies include an accounting policy for reserves or a commentary in the critical estimates and judgements note, or in the manageme...
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