The long-awaited new FASB Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, was finally issued on May 28, 2014. This new guidance is the result of a collaborative effort by the FASB and the IASB to agree on a global standard based on common principles that can be applied across industries and regions. In the United States, this new guidance will replace most of the industry-specific GAAP requirements that have become complex and cumbersome to apply in practice. For the rest of the world, it will replace the IFRS standards for revenue recognition that provide limited implementation guidance and can be difficult to understand and apply.
This Flash Report provides a detailed overview of the new revenue recognition standards and the steps companies should begin undertaking to plan for adoption of these new standards.