Another wave of changes is on the horizon for the new revenue recognition guidance, which could tweak visions of global convergence in revenue recognition.
As reported in Accounting Today and other venues, the Financial Accounting Standards Board (FASB) this week published an accounting standards update to address issues around collectibility, taxes, non-cash consideration, contract modifications and other items.
The governing board has described the latest proposed amendments as improvements which are narrow in scope and would not change the core principles of the new standard, scheduled to take effect in 2018.
The latest clarifications aren’t completely in sync with those of the International Accounting Standards Board (IASB), which joined the FASB in May 2014 to announce the long awaited converged revenue recognition rules to help simplify how companies record revenue across the globe.
“The amendments in the proposed update are not identical to those proposed by the IASB, and some are incremental to the amendments proposed by the IASB,” the FASB proposal states. “The FASB expects that the amendments in this proposed update would not result in financial reporting outcomes that are significantly different from those reported under IFRS for similar transactions.”
The FASB is accepting comments on the proposed changes to the new standard by November 16.