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ARTICLE · 11 JULY 2014

Long Overdue Revenue Recognition Standard Becomes A Reality

HMWC
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The overhaul of the revenue recognition accounting standard has been on the convergence agenda of the FASB and the IASB since 2002.

United StatesAccounting and Audit

One size fits all will cause challenges for some

The overhaul of the revenue recognition accounting standard has been on the convergence agenda of the FASB and the IASB since 2002. When we first wrote about the protracted journey of this process two years ago, the final standard was hoped for by the end of 2012. At that time, a Discussion Paper and two Exposure Drafts had already been issued and debated extensively. Now at last, the final standard, Revenue from Contracts with Customers, is at hand.

The deliberate nature of the process has proved beneficial in providing sought after clarity and more specific criteria for making the determinations required by the standard. Respondents presented unique aspects of their contracts to enable further delineation of how the standard would be applied.

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