Need some additional insight on how the new accounting standard on revenue recognition could impact your company? Then you might be interested in viewing a webcast hosted by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) next week.
The FASB and the IASB, which jointly released the global standard on recording revenue on Wednesday, will present IN FOCUS: Revenue from Contracts with Customers at 10 a.m. EDT (3 p.m. British Summer Time) on June 5. The live, one-hour broadcast will provide a high-level overview of the two standard-setting boards’ new guidance on revenue recognition.
The webcast is offered free of charge to those who preregister for the event. In addition, US participants will be eligible for up to one hour of continuing professional education (CPE) credit.
The new rule standardizes how companies should recognize revenue from contracts with customers in financial statements under both US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). It also will result in enhanced disclosures about revenue, provide guidance for transactions like contract modifications that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements.
Companies using IFRS will be required to apply the standard for reporting periods beginning on or after January 1, 2017. Early application is allowed for companies that use IFRS.
The standard will take effect for US public companies for annual reporting periods beginning after December 15, 2016, including interim reporting periods. For nonpublic companies in the United States, the standard takes effect for annual reporting periods beginning after December 15, 2017, and interim and annual reporting periods thereafter.
During the webcast, IASB member Patricia McConnell and FASB member Larry Smith will lead a discussion on the following aspects of the new guidance:
- Background of the project and expected improvements.
- An overview of the five-step model and detailed discussion around key topics, including recognizing revenue over time, contract costs, disclosures, transition, and effective date.
- A briefing on the joint transition resource group.
- A question-and-answer period.
An archive of the webcast will be available on the FASB and IASB websites through September 3, 2014. CPE credit will not be available to those who view only the archived webcast, nor will it be available for group viewings of the live broadcast.