Accounting News

Tuesday, November 15, 2011
Revised Revenue Standards Issued

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued a revised requirement for recognizing revenue. The revision comes after receiving 1,000 comments from the original proposal. 

The goal is to recognize revenue when the company transfers the promised goods or performs the services based on a contract. The proposal also outlines how to recognize revenue when the goods or services are performed over a period of time. It also allows the company to expense the costs of winning a contract. 

The total proposal is 226 pages long but provides over two dozen examples of the new standards. They are now accepting comments until March 13 before they issue the final ruling.