Posts Tagged ‘revenue recognition’
what will a new revenue recognition standard accomplish to improve financial reporting? And at what cost?
Those are Tom Selling’s questions in his post, Revenue Recognition Sure Isn’t Perfect – But Convergence will be much Worse.
As to the cost question, I expect it would be very high. The disruption to preparers, confusion for report users, and increased time for auditors would be big.
Prof. William F. O’Brien, CPA, has a great survey of the major accounting issues in our future and some suggestions on how to absorb the change that is on the way. His article, Surf’s Up! Wave of Financial Reporting is Coming, is in the January/February edition of California CPA magazine.
Major issues he describes are:
FASB has an exposure draft out on revenue recognition. This post is a ‘heads up’, not an overall summary. This will be a fairly substantive rule, so if you haven’t heard about it, might be good to take a look. The document has a great summary on the first five pages of the introduction. Read the rest of this entry »