Nov 16, 2017, 2:54 PM
(From CFO) FASB's new revenue recognition standard is perhaps the board’s most transformative action in the last decade. The rule, a converged effort by FASB and the IASB issued in 2014, “may or may not have significant outcomes on the revenue of your company... but the standard is 'transformative' in moving reporting to the top line of the income statement, and moving from a diverse group of industry standards to one framework about how to think about revenue,” an outgoing FASB member said. It had been important for FASB to work with IASB to issue a converged revenue recognition standard, as well as one based on a unified framework because FASB had lots of sector-specific standards whereas the IASB didn’t.
Under the revenue recognition standard, public organizations will begin complying with annual reporting periods beginning after December 15, 2017. Nonpublic organizations will apply the new revenue standard to annual reporting periods beginning after December 15, 2018.
More on CFO (11/15/17)
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