Student: Paige Devine*
Mentor: Karen Cascini
Revenue is one of the most important measures used by potential investors in assessing a company and its performance. However, revenue recognition standards differ in the United States’ Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS), both of which are seen as needing improvement. In a joint effort to address the issue, FASB and the International Accounting Standards Board (IASB) issued a press release in May of 2014 announcing a new converged guidance for recognizing revenue in customer contracts. This new guidance is a major step in the Boards’ effort to improve this very important area of financial reporting. Overall, the new standard will help remove inconsistencies and weaknesses in existing revenue requirements as well as provide a more robust framework for addressing current revenue issues.