FASB and the IASB agreed Wednesday to re-expose their revised proposal for a common revenue recognition standard.
The decision comes following joint deliberations on stakeholder feedback received from a June 2010 exposure draft that would create a single revenue recognition standard for both U.S. GAAP and IFRS.
The proposal, which was designed to streamline accounting for revenue across industries and correct inconsistencies in existing standards and practices, was criticized last year by the AICPA’s Financial Reporting Executive Committee (FinREC).
“We agree with the theoretical merit of many of the concepts included in the proposed standard,” FinREC said in its comment letter . “We also believe, however, that certain principles ... may be neither practical nor operational for preparers and auditors to apply without undue cost.”
The boards have since tentatively agreed to make a number of changes to the proposal that t hey intend to re-expose revisions in the third quarter of 2011 for a 120-day comment period, according to a joint press release.
The boards said it was their unanimous view “that while there was no formal due process requirement to re-expose the proposals, it was appropriate to go beyond established due process given the importance of the revenue number to all companies and the need to take all possible steps to avoid unintended consequences.”
Also read:
- IASB and FASB Report Progress on Convergence, April 21, 2011
- Convergence Milestone, Aug. 2010
- Big Changes Proposed for Revenue Recognition, June 24, 2010
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