IASB : Revenue recognition: finally, a Standard approach for all

Patricia McConnell, a member of the IASB, provides her perspectives on the new accounting requirements for revenue recognition.

On 28 May 2014, after extensive consultation and deliberations spanning several years, the IASB and the US Financial Accounting Standards Board (FASB) jointly issued converged accounting standards on the recognition of revenue from contracts with customers. The IASB’s standard is known as IFRS 15 Revenue from Contracts with Customers.

With revenue as the ‘top line’ metric that is crucial to many investment decisions, the issuance of IFRS 15 is a significant milestone in financial reporting. Not only will IFRS 15 lead to better alignment between a company’s revenue and performance, but it will also provide a one-stop shop for revenue accounting for companies that use IFRS and US GAAP, regardless of which sectors or capital markets they operate in. This, in turn, will help investors in their analysis and comparison of these companies.

Read the full article: Revenue recognition: finally, a Standard approach for all

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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