A New World Of Revenue Recognition Revenue From Contracts With Customers

Fasb and the international accounting standards board lasb jointly issued anew revenue recognition standard revenue from contracts with customers in may 2014 after more than six years of meetings deliberations and drafts.

A new world of revenue recognition revenue from contracts with customers. In addition the new revenue recognition standard advises companies to allocate. New revenue recognition standard revenue from contracts with customers adopts an asset liability approach companies. The financial accounting standards board fasb and the international accounting standards board iasb jointly issued a new revenue recognition standard revenue from contracts with customers in may 2014 after more than six years of meetings deliberations and drafts. Are required to analyze contracts with customers contracts indicate terms and measurement of consideration.

In may 2014 fasb issued accounting standards update asu 2014 09 revenue from contracts with customers topic 606 changing the way revenue is recognized. Article write up 1 yeaton 2015 research titled a new world of revenue recognition about the discussion of the new revenue recognition standard jointly issued by fasb and iasb which is effective after december 15 2016 for public companies and after december 15 2017 for private companies and non profit organizations p 50. The revenue that has been recognized but not yet billed is recorded on the balance sheet as a contract asset. As of january 25 2017 the fasb has issued asus to revise and clarify the guidance on the original topic 606.

In accordance with the. The financial accounting standards board.