Note: Since issuing the new revenue standard in May 2014, the FASB and IASB have proposed various amendments to the guidance. This In depth has not been updated to reflect all of the proposed changes. See In transition US2015-08, The new revenue standard — changes on the horizon, for a summary of the changes, their impact, and the areas where the FASB and IASB have taken different approaches.
On May 28, the FASB and IASB issued their long-awaited converged standard on revenue recognition. Almost all entities will be affected to some extent by the significant increase in required disclosures. But the changes extend beyond disclosures, and the effect on entities will vary depending on industry and current accounting practices.
This industry-specific supplement to our In depth highlights some of the areas that could create the most significant challenges for retail and consumer entities as they transition to the new standard.
For a comprehensive analysis of the new standard, read In depth: Revenue standard is final – A comprehensive look at the new model.
* This In depth was revised on September 8, 2014 to include the following additional sections: (1) Amounts collected on behalf of third parties, and (2) Bill-and-hold arrangements.
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