Revenue Recognition Standard
Revenue Recognition Standard
Revenue Recognition Standard
In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards 
Board (IASB) issued their much-anticipated converged standard on revenue recognition. The FASB issued 
Accounting Standards Update (ASU) No. 2014-09, and the IASB issued International Financial Reporting 
Standard (IFRS) 15, both titled “Revenue From Contracts With Customers.” With only minor differences, the
joint standard represents a single, global, principles-based revenue recognition model. The new guidance 
will affect almost every entity that recognizes revenues from contracts with customers, so financial executives with manufacturers and distributors should begin to gain an understanding of the new standard

The far-reaching impact of the new revenue recognition standard will affect different industries in different 
ways. To be ready when the new guidance goes into effect, financial executives need to understand the 
potential effects of the coming changes and determine the best way to implement the new guidance in their 
organizations.