After years of discussion, the release of FASB/IASB revenue recognition standard provides direction, albeit, perhaps not the direction we all had hoped. With implementation dates ranging through 2017, the accounting profession will have ample time to work with financial statement users to ensure the impacts are softened. Rodefer Moss will be reviewing the effects on our clients across all industries, so stay tuned!
On May 28, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The standard will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. This standard has the potential to affect every entity’s day-to-day accounting and, possibly, the way business is executed through contracts with customers.
For more information from the AICPA, click here.