Businesses often enter into so-called “collaborative arrangements” when embarking on a major project, such as designing a new medical device or producing a film. However, the rules for reporting shared costs and revenue under U.S. GAAP are unclear, and the new revenue recognition standard has added to the confusion. In April, the Financial Accounting Standards Board issued a proposal to help clarify matters. We’re atop recent developments on reporting collaborative arrangements. Contact us with questions or to help you implement the latest guidance.
