The International Accounting Standards Board (IASB) and its US counterpart the FASB have agreed parts of a new accounting standard for eevenue recognition - although a final version is not expected until 2017.
The planned rule for when companies put sales in their accounts is one of the most important of the IFRS used by companies to prepare financial statements.
Revenue is the headline figure in a set of financial statements in all countries. It plays a pretty important part in not only the calculation of profits, but also affects external stakeholders such as banks, other financiers, tax authorities, suppliers and credit rating agencies. The objective of a standard for revenue recognition is to give analysts and investors more confidence that revenue is being recognised on a consistent basis and across all industries and continents that adopt IFRS.
The standard is fairly complex, but progress is being made according to a PwC report. Agreement on the new standard, includes...