Revenue recognition when product return and pricing adjustment uncertainties exist

My forthcoming paper in Accounting Horizons (Rasmussen 2013; “Revenue Recognition, Earnings Management, and Earnings Informativeness in the Semiconductor Industry”) examines the implications of revenue recognition for companies with product return and pricing adjustment uncertainties. Although these uncertainties are typically minimal for sales to end customers, they can pose large risks for sales to distributors. The [...] Read more > >

Principles-Based versus Rules-Based Accounting Standards

If you were to pose a question to any undergraduate accounting major with familiarity about IFRS as to what is the primary distinction between IFRS and U.S. GAAP, you’d probably get the response that IFRS is principles based and U.S. GAAP is rules based.  It’s a notion that was promoted by former IASB Chairman Sir [...] Read more > >

Summary of Important Changes to Revenue Recognition

The Revenue Recognition project has been going on now for, what, nearly a decade?  After extensive deliberations and outreach by the Boards, we might actually see a final standard roll out sometime this year.  Given the fundamental nature of the topic, it is likely to have a substantial impact on how most of us teach.  The [...] Read more > >

FASRI Roundtable: Proposed Standard on Revenue Recognition

Click here to view the video recording of this Roundtable   The first FASRI Roundtable for 2012 will cover the newly proposed standard on Revenue Recognition.  FASB practice fellows Michael Breen (KPMG) and Heather Harris (General Electric) will lead the discussion.  Michael is a senior manager at KPMG and Heather is an Assistant Controller in the [...] Read more > >

FASB & IASB Propose New Revenue Recognition Standard

official news release, this new exposure draft addresses concerns raised in the 1000+ comment letters received in response to the first exposure draft. In particular, this exposure draft: adds guidance on how to determine when a good or service is transferred over time; simplifies the proposals on warranties; simplifies how an entity would determine a [...] Read more > >

Revenue Recognition and "Libby Boxes": Research Brainstorming Roundtable

Revenue recognition is one of FASRI’s key target areas for research over the coming year.   We are going to take a big step forward on Tuesday, October 6th, 4pm by laying out some possible approaches to research studies on RevRec.  We will be structuring our discussion around the key independent variables that researchers might have [...] Read more > >