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The National Financial Accounting Standards Board

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The national Financial Accounting Standards Board (FASB) and The International Accounting Standards Board (IASB) came together and jointly issued a newer revenue recognition standards. This will change the effects of the current revenue guided under US GAAP and IFRS. It will take not much of the time to be used as the date is set to have effects from 2017. All of the firms had to work under the rules and regulations set. There is enough of the time left to understand and work on the changes. On dated 28th May, 2014 the new revenue standards were issued for contracts with customers. It has the power to give limitations and new rules are to be followed by various industries. It also includes those industries which have their own policies…show more content…
• It also comprises of better types of information which is more useful for investors with all the requirements of disclosure. It will be more likely to be seen that the new revenue will be more affected towards financial entity statements and preparation of financial reports of business. Instead there also will be companies which will understand the new changes and act upon it. They will be able to work with the new standards which very much less time and working will be easier. While few of controls will acts just the opposite as they will notice as they have been working in old pattern. This will become more apprehending as to implement with the rules. As soon as an early papers will be produced it will play a major role as to understand the purpose and easy to manage new implementations. The board is also prepared two different types of standards as many see them as one single standardization policy (Damodaran, 2002). The rules and regulations of US GAAP and IFRS are seen to be similar but few of these are set to a bit of difference • The Board had provided US GAAP more description to the levels of confidence. This is required for assessing all the collectibles so that it becomes more identifiable in contracts with the customers. This process is much more lower in IFRS • The conditions of FASB needs much more of the disclosure rather than compared to IASB. • The conditions of IASB give it customers to have an early
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