FASB: Final Revenue Recognition Standard Coming Soon
by Terri Eyden on
By Jason Bramwell
A revenue recognition standard for US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) is close to being finalized.
On November 6, the Financial Accounting Standards Board (FASB) voted to move forward with preparing the final standard on revenue recognition, which is slated to be issued during the first quarter of 2014.
The board's decision on Wednesday follows the completion last week of the technical discussion of the joint revenue recognition project by the FASB and the International Accounting Standards Board (IASB). Since 2002, the two standards-setting groups have been working on developing a final converged standard for revenue recognition.
FASB staff was authorized to prepare and issue a ballot draft of the standard, which will be submitted to the board for final approval. Once approved, the final standard will be published as part of the FASB Accounting Standards Codification. The IASB is expected to hold its vote to confirm balloting of the standard later this month.
FASB Chairman Russell Golden said in a written statement on November 6 that the standard both improves and substantially converges guidance on how revenue is recognized in financial statements.
"Today's vote represents a major milestone in our eleven-year effort to create greater comparability in an area of financial reporting that affects all industries," he said.
The final revenue recognition standard will likely go into effect for public companies in 2017 and in 2018 for private companies.
- FASB and IASB Form Revenue Recognition Transition Group
- FASB Releases Proposal for Revenue Recognition Project
You may like these other stories...
Clawback policies vary by company, industry: PwCAccording to a report issued to clients by PwC on April 17, companies have instituted a wide range of so-called clawback policies – with no two exactly alike – in...
IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Is it time to consider a value added tax?Forbes contributor Joseph Thorndike wrote yesterday that he believes the tax reform proposal by House Ways and Means Committee Chairman Dave Camp (R-MI) was dead on arrival. But he...
Upcoming CPE Webinars
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.