Peeling away financial reporting issues one layer at a time

Category for Revenue Recognition

Revenue by (Logical) Deduction

It seems there is always good reason to write a post about revenue recognition.  I can even envisage an entire blog on  the FASB’s new standard (ASC 606). It could go on for years without [Read More...]

Proposed ASU EITF 2015-15B: Lipstick for a Pig of a Revenue Presentation Standard

The FASB has issued Proposed Accounting Standards Update EITF 2015-15B, Recognition of Breakage for Certain Prepaid Stored-Value Cards.  If finalized, it would change the way that retail merchants who sell gift cards for [Read More...]

The Grim Political Realities of the Impending Revenue Recognition Standard

On April 29th, the FASB issued proposed ASU 2015-240, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. It is widely expected that the Board will adopt a one year delay in [Read More...]

Gross versus Net Presentation: The First of Many Revenue Recognition Debacles to Come?

Pick any class of upper-level accounting students, and give them a few cases of supplier/customer relationships for which “gross versus net presentation” of revenues is an issue, and I’ll wager that the class will come [Read More...]

Revenue Recognition: A Litmus Test for Convergence with IFRS

Do you remember the Big Four mantra that IFRS adoption in the U.S. was “inevitable”?  Today, thankfully, the operative word is “dead.”  Even former SEC chair, Christopher Cox, whose brainchild was the IFRS adoption [Read More...]

The Wild West of “Nonauthoritative” GAAP

Two posts ago, I provided two reasons for the PCAOB* to take the opportunity of its auditor’s report project to look closely at the meaning of, “fairly presented … in accordance with [Read More...]

“Reducing Complexity” — The Latest Red Herring from the FASB

I don’t have exact figures, but I’m fairly certain that the AICPA’s annual Washington, DC conference on SEC-related developments may be the place where you can find the highest number of accountants crammed [Read More...]

My Safest Prediction for 2014: New Revenue Recognition Rules that Nobody Wants

We have thankfully come to the end of a year in which the gratuitous and repeated attempts by the FASB to converge U.S. GAAP with IFRS have finally devolved from “inevitable” to ignominy. [Read More...]

The Big Revenue Recognition Fizzle

“The new, converged revenue recognition standard will include substantially less industry-specific, “bright-line” guidance than many U.S. companies are accustomed to.” [italics added]

That understatement is brought to you by the Journal of Accountancy.  It’s the [Read More...]

Revenue Recognition Sure Isn’t Perfect – But Convergence will be much Worse

No one will ever say that U.S. GAAP revenue recognition standards are consistently principles-based, but few would say the system needs to be completely overhauled. Other than to achieve convergence of U.S. GAAP and [Read More...]