Revenue recognition is filtering into everyday life, highlighted on a recent trek to the local mobile shop to upgrade a phone. The long-running attempt to reform revenue recognition, a much argued standard which is being reformed on a joint basis by the global standard setter, International Accounting Standards Board (IASB), and US Financial Accounting Standards Board (FASB), is rumbling on. It is likely that 2017 will be the implementation date for the new accounting rules. Debated for months, the main issues seem to be ironed out although there are still concerns from telco and cloud operators, to name but a few, that extrapolating the revenue into component parts will create insurmountable barriers for these sectors. The issue revolves around performance obligations, which essentially require businesses to split out the component parts of contracts.
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