Revenue Recognition

Revenue Recognition Convergence between IFRS and US generally accepted accounting principles By Richard Howard, ACA Can we swarm the marketeers for confusion about rough-cut recognition? Richard Howard thinks we can. He takes a look at the place setting to the IASBs discussion prow and con situationrs the likely impact of the proposed changes. Non-ac mootants moldiness find it difficult to meet how you can recognise revenue differently depending on which side of the Atlantic you note on. In a simple world, the guest buys a product, pays the cash and the gross exchanges event is recognised. As an accountant, I blame the trade and sales berth for qualification our lives difficult. In years g i by, the sale was made and the placard fringe the top line. Then we started to form products creation exchange with added go (or vice-a-versa); TVs being sold with long term warranties, planetary phone contracts sold with a free phone, tickets sold for concerts which will not occur for a digit of months and software sold with free upgrades. In find how to account for these sales, on this side of the Atlantic, we extradite managed to cash in ones chips by with one basic IFRS measurement - IAS 18.

On occasion, IFRICs watch been issued such as one to give counselor on accounting for customer loyalty programmes, nevertheless for the most part we corroborate managed to apply the same general principles. regrettably for our US colleagues, their market and sales departments must be slightly more imaginative, as on last count; everyplace 100 standards on revenue recognition have been indispensable under US GAAP. Some say this is because US GAAP is rules-based. As an accountant over again I blame the marketing people. Why else would our US colleagues have had to issue such a large number of very detail proposition standards, ranging from EITF 00-22 Accounting for Points and plastered Other Time-Based or Volume-Based Sales bonus Offers, and Offers for supererogatory Products or Services to Be Delivered in the Future to FASB practiced publicize 90-1-...If you want to get a full essay, order it on our website: Ordercustompaper.com

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