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FASB and IASB Announce Formation of Joint Transition Resource Group for Revenue Recognition

IFRS

By Jenna Zelenski

On July 26, 2013, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) announced that they will be creating a joint transition resource group (group) on revenue recognition. The group will be comprised of ten to fifteen specialists. An announcement listing the members will be released after issuance of the final standard.

The primary objective of the group will be to collaborate on the final converged standard on revenue recognition. The final issuance of the revenue recognition standard is slated to take place during the third quarter of this year and will be effective in 2017. As entities begin working through interpretation and implementation of the new standard, the group will gather information surrounding stakeholder issues with common transactions that may causes differences in method. The information will then be communicated to the FASB and IASB in order for them to be able to decide how to handle the diversity.

Issues should be submitted to the group and will need to meet minimum guidelines. The guidelines will be posted to each Board’s website after the final standard is issued. The issues will then be presented by staff of each Board at public transition group meetings.

Information regarding the group and final revenue recognition standard will be found at www.fasb.org and www.ifrs.org as it becomes available.

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