FASB and the IASB have issued new joint guidance that addresses one of the most important measures investors use when assessing a company’s performance and prospects — revenue. FASB’s version, communicated in ASU No. 2014-09, Revenue from Contracts with Customers, standardizes and simplifies the revenue recognition process for customer contracts across different industries and geographic locations. It also requires more comprehensive footnote disclosures for all types of public and private companies. This article provides an overview of the converged guidance, along with a brief look at the potential impact on certain industries.
File Download: Long-Awaited FASB, IASB Guidance Significantly Changes Revenue Recognition in Financial Statements