Revenue recognition

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Revenue recognition: 5-step model

The FASB and IASB recently released a final converged standard on revenue recognition. Companies across all industries will use a new five-step model to recognize revenue from customer contracts.

The new standard, which replaces nearly all existing US GAAP and IFRS guidance, will require significant management judgment, in addition to changing the way many companies recognize revenue in their financial statements.

The FASB voted on April 1 to propose a deferral of the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date, January 1, 2017). The FASB decided, based on its outreach to various stakeholders and the forthcoming exposure drafts, which amend the new revenue standard, that a deferral is necessary to provide adequate time to effectively implement the new revenue standard. The IASB has not provided a specific timeline to make a decision regarding a potential delay in the effective date of the standard.

We provide an integrated approach to help you understand the new standard and be better prepared for the change. We take into account your unique situation, and apply our significant knowledge of the new standard to help your business from end to end.

Understanding IFRS 15: Revenue Recognition

Understanding IFRS 15: Revenue Recognition

Paul Feetham, Partner, Accounting Advisory Services, discusses IFRS 15, the Revenue Recognition standard, its impact, and how to overcome implementation challenges. View more.
In brief: The latest news in financial reporting
FASB proposes one year deferral of new revenue standard.






Revenue revolution
What audit committees need to know about the new revenue standard.






The 2014 global accounting and financial reporting guide
This first edition summarizes the new five-step revenue recognition model and provides examples to illustrate its application.





In Depth: Industry-specific supplements
Our industry-specific supplements highlight examples and insights on how companies are likely to be affected by the revenue recognition standard.





In Brief
Access to PwC’s webcast and slide presentation explaining the standard’s interpretation, as well as industry-specific supplemental material.