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Sunday 21 December 2014

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Revenue Recognition


 Discussion Paper comment letters

On 19 December 2008, the International Accounting Standards Board (IASB) published for public comment a discussion paper Preliminary Views on Revenue Recognition in Contracts with Customers, setting out a joint approach for the recognition of revenue.

 

Revenue is an important number to users of financial statements in assessing a company’s performance and prospects. However, revenue recognition requirements in US generally accepted accounting principles (GAAP) differ from those in International Financial Reporting Standards (IFRSs) and both are considered in need of improvement.

 

The requirements in US GAAP comprise numerous standards—many are industry‑specific and some can produce conflicting results for economically similar transactions. Although IFRSs contain fewer standards on revenue recognition, its two main standards have different principles and can be difficult to understand and apply beyond simple transactions.

Comment letter deadline

 

The discussion paper was open for comment until 19 June 2009.

Respondent type

  • Respondent Type Number Percentage
  •  
    Preparer
    79
    37%
  •  
    Professional institutions
    40
    19%
  •  
    Industry-specific trade association
    18
    9%
  •  
    Standard-setter
    14
    7%
  •  
    Individual
    14
    7%
  •  
    Accounting firm
    9
    4%
  •  
    Investor/analyst/user
    6
    3%
  •  
    Non-industry specific focus groups
    6
    3%
  •  
    Academic
    3
    1%
  •  
    Regulator
    3
    1%
  •  
    Other
    1
    <1%
  • Total 211 100%

Geographic region

  • Geographic Region Number Percentage
  •  
    Europe
    76
    36%
  •  
    North America
    75
    36%
  •  
    Australia/New Zealand
    19
    9%
  •  
    Multinational
    13
    6%
  •  
    Asia Pacific excl. Australia/New Zealand
    12
    6%
  •  
    Africa
    5
    2%
  •  
    Middle East/India
    4
    2%
  •  
    Latin America
    1
    <1%
  •  
    NA
    6
    3%
  • Total 211 100%