Revenue Recognition Standard Issued by FASB and IASB
The following are excerpts from FASB’s website:
Norwalk, CT, May 28, 2014—The International Accounting Standards Board (IASB), responsible for International Financial Reporting Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for U.S. Generally Accepted Accounting Principles (U.S. GAAP), today issued jointly a converged standard on the recognition of revenue from contracts with customers.
The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services.
To watch a short FASB video about the new revenue recognition standard, click here.