The Revenue Recognition Under Fasb And Ifrs Provisions

985 Words4 Pages
Background. Revenue is a financial statement item. Accounting for revenue contains standards and principles for revenue recognition. Revenue recognition rules and statutory requirements significantly evolved over the years. It became more detailed for the purpose so financial statement users can understand true company performance and projections.
The revenue recognition framework had significant differences under The Financial Accounting Standards Board (FASB) and International Financial Reporting Standards (IFRS) provisions. The transformation of revenue recognition was necessary to provide the integrity to financial statements. Moreover, new revenue recognition standards should be applicable to all businesses (p50 A New World of Revenue Recognition).
Purpose of research. The purpose of research is to analyze and compare the revenue recognition under FASB and IFRS provisions. The research is built on other studies that focus on the revenue recognition model and converged standards. The value of this study cannot be overemphasized since the revenue is an essential metric of financial statements that provides a comprehensive knowledge to users of financial information. The revenue recognition framework is under the development and scrutiny since 2002.
Literature review. The economic integration and globalization processes increased the need for accounting standards to be more reliable (p21 McCarthy, M., & McCarthy, R. (2014).). The accurate determination of income and

More about The Revenue Recognition Under Fasb And Ifrs Provisions

Get Access