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Revenue Recognition

PCAOB Action Illuminates Returns Accounting

Tammy Whitehouse February 28, 2012

A recent disciplinary action against Ernst & Young provides a lesson for corporate accounting executives and auditors alike on how not to push accounting logic to improve reported financial results. The case centers on Medicis Pharmaceuticals' accounting for returned products, an area of accounting that relies heavily on judgment—which Medicis took too far, and ended up with a restatement. Details inside.

Boards Host Last Call Sessions on Revenue Recognition

Tammy Whitehouse February 21, 2012

Approaching their last call for feedback on a brand new way to recognize revenue, the Financial Accounting Standards Board and the International Accounting Standards Board are hosting a series of public meetings globally this spring to answer any last-minute questions or concerns before the rules are finalized.

Cheat Sheet: FASB Publishes Guide on Old, New Revenue Rules

February 15, 2012

Still not quite up to speed on the critical changes coming to the accounting standard for recognizing revenue? The Financial Accounting Standards Board has just published a 52-page slide presentation to explain the proposal and to compare it with current rules, so readers can better grasp the changes ahead. Details inside.

Parsing New Revenue Recognition Proposal

Tammy Whitehouse November 29, 2011

The latest proposal from the Financial Accounting Standards Board for how companies should recognize revenue falls somewhere between an earlier proposal and current practice—but far enough away from current practice still to give financial reporting departments lots to consider. "I've seen very few companies that won't see some level of change," says Dusty Stallings, a partner with PwC. A close look at the standard is inside.

FASB, IASB Reveal New Drafts on Revenue Recognition

Tammy Whitehouse November 15, 2011

Accounting rulemakers have opened Round 2 on their proposal to overhaul the accounting for revenue recognition, publishing their revised draft standard for a new wave of comment and feedback. The revised proposal still contains the same core principles established in the 2010 draft, but it attempts to make the rules simpler and easier to apply.

Q&A: A Conversation With America's Top Accountant

Tammy Whitehouse October 04, 2011

In the latest of our Q&A interviews, we sat down with Leslie Seidman, chairman of the Financial Accounting Standards Board. Inside, Seidman discusses the status of FASB's efforts to converge U.S. accounting rules with International Financial Reporting Standards, FASB's work on loss contingencies, and what's next for the accounting standard setter, including a project that could lighten the disclosure burden.

FASB to Seek Fresh Feedback on Revenue Standard

Tammy Whitehouse June 15, 2011

The Financial Accounting Standards Board has decided it will give preparers, auditors, and users of financial statements another chance to comment on a proposed new standard for revenue recognition, likely pushing its completion into 2012.

Audit, Accounting Regulators Promise More Action

Tammy Whitehouse June 01, 2011

Tom Linsmeier of FASB, above, and Jay Hanson of the PCAOB both told Compliance Week 2011 attendees last week that new standards are on the way that (hopefully) will provide more clarity around corporate transactions to investors—but they also warned that good standards alone won't necessarily prevent future financial crises. More highlights from their keynote speeches inside.

Revenue Recognition Rules for Bundling Take Effect

Tammy Whitehouse January 25, 2011

Companies reporting on a calendar year-end are required to start using new accounting rules for revenue recognition on bundled products or services in 2011. While the new rules may accelerate recognition of revenue, they are complex. "Many underestimate the effort that this is going to take," says Steve Hobbs of consulting firm Protiviti.

FASB, IASB Unveil Major Proposal on Revenue Recognition

Tammy Whitehouse June 24, 2010

In another significant step toward convergence of accounting rule books, the Financial Accounting Standards Board and the International Accounting Standards Board have published their joint proposal for a new and improved approach to the recognition of revenue.The standard simplifies and streamlines the complex, convoluted web of guidance scattered throughout U.S....

FASB Issues More Updates on Loan Modifications, Revenue

Tammy Whitehouse April 30, 2010

The Financial Accounting Standards Board finished April with two more Accounting Standards Updates to reflect some narrow but sticky implementation issues tackled by the board’s Emerging Issues Task Force.The board published Accounting Standards Update No. 2010-18 to address how financial institutions should account for bad loans they have acquired as...

FASB Finalizes New Revenue Recognition Rules

Tammy Whitehouse October 09, 2009

Public companies now have new revenue recognition rules to follow when booking sales for complex, multiple-element transactions and those involving software.The Financial Accounting Standards Board has published two new Accounting Standards Updates that in some cases will give companies the ability to recognize revenue sooner on certain types of complicated...

FASB Approves New Revenue Recognition Method

Tammy Whitehouse September 24, 2009

Technology companies are rejoicing over a new rule adopted by the Financial Accounting Standards Board yesterday that will accelerate revenue recognition for many of their products.The FASB voted unanimously and without comment to adopt a consensus of its Emerging Issues Task Force to allow companies more flexibility in how they...

EITF Recommends New Revenue Recognition Approach

Tammy Whitehouse September 15, 2009

Companies that have relied on the “residual method” for allocating revenue to multiple-element arrangements probably will need a new game plan—and soon.The Emerging Issues Task Force of the Financial Accounting Standards Board has reached a final consensus in Issue 08-1, which focuses on how to allocate revenue when companies are...

FASB, IASB Share Thoughts on Revenue Recognition

Tammy Whitehouse December 23, 2008

U.S. and international accounting rule makers want feedback on their initial efforts to bridge the wide gulf in their respective rules on recognizing revenue.The Financial Accounting Standards Board and the International Accounting Standards Board have published a joint discussion paper on their work so far to establish a single revenue...

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