Revenue Recognition

Revenue Recognition Convergence between IFRS and US generally accepted report principles By Richard Howard, ACA Can we shoot the marketeers for confusion about receipts recognition? Richard Howard thinks we can. He takes a look at the circumstance to the IASBs discussion base and considers the likely impact of the proposed changes. Non-ac mootants essential find it difficult to project how you can recognise taxation differently depending on which side of the Atlantic you acknowledge on. In a simple world, the customer buys a product, pays the cash and the gross sales event is recognised. As an controller, I blame the merchandising and sales berth for making our lives difficult. In years done for(p) by, the sale was made and the placard hit the top line. consequently we started to get products being exchange with added go (or vice-a-versa); TVs being sell with long term warranties, mobile phone contracts sold with a free phone, tickets sold for concerts which will not occur for a digit of months and software sold with free upgrades. In find how to account for these sales, on this side of the Atlantic, we extradite managed to get by with one basic IFRS measurement - IAS 18.

On occasion, IFRICs let been issued such(prenominal) as one to give guidance on accounting for customer loyalty programmes, but for the most part we have managed to apply the same general principles. Unfortunately for our US colleagues, their marketing and sales departments must be slightly more imaginative, as on last count; over 100 standards on revenue recognition ha ve been indispensable under US GAAP. Some ! say this is because US GAAP is rules-based. As an accountant over again I blame the marketing people. why else would our US colleagues have had to issue such a bear-sized number of very particular proposition standards, ranging from EITF 00-22 Accounting for Points and sealed Other Time-Based or Volume-Based Sales Incentive Offers, and Offers for supererogatory Products or Services to Be Delivered in the Future to FASB Technical beam 90-1-...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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