1. Discuss the core principle of the standard and whether or not you are in agreement with the proposed standard.
2. Discuss how you believe U.S. companies will react to the proposed changes.
3. Assume you are working as a Certified Public Accountant. Discuss how you would prepare your clients to adopt the proposed changes to revenue recognize.
As the FASB and the IASB struggle to come together, the standards for revenue recognition under GAAP will have to change. There are four main differences in the IASB proposal compared to FASB currently. Mostly they center on when and how much revenue should be recognized:
1. Revenue would not be recognized until the transfer of goods or services is made to the customer.
2. A distinction will have to be made between goods and services within contract reporting.
3. Revenue recognition will have to assess the collectability before recording revenue.
4. More use of estimates will be required for the ...
The 369 word cited solution explains the differences in revenue recognition concepts between FASB and IASB including examples.