FASB Weighs 'Firm Offers,' Stable-Value Assets

The board reconsiders a long-standing revenue-recognition practice, and reaffirms the treatment of a 401(k) stalwart.

In a "firm offer" — sometimes called a "one-sided offer" — a company contacts a specific prospective purchaser and offers an item or items for sale at a specific price. It has long been a fundamental accounting practice that whatever liability may be generated by this promise or price guarantee is not recognized until the purchaser actually pays for one of the offered items or takes delivery.

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