NEWS RELEASE 11/06/13
FASB VOTES TO MOVE FORWARD WITH FINAL STANDARD ON REVENUE RECOGNITION
Norwalk, CT—November 6, 2013—The Financial Accounting Standards
Board (FASB) today voted to move forward with preparing a final standard on
revenue recognition. The final standard is expected to be issued during the
first quarter of 2014.
Today´s decision follows the completion last week
of the technical discussion of the joint project by the FASB and the
International Accounting Standards Board (IASB). The vote authorizes the FASB
staff to prepare and issue a ballot draft of the standard. The ballot draft will
be submitted to the FASB for final approval. Once approved, the final standard
will be published as part of the FASB Accounting Standards CodificationTM. The
IASB will hold its vote to confirm balloting of the standard later this
month.
"The FASB will issue a standard that both improves and
substantially converges guidance on how revenue is recognized in financial
statements," said FASB Chairman Russell G. Golden. "Today´s vote represents a
major milestone in our 11-year effort to create greater comparability in an area
of financial reporting that affects all industries."
The final Revenue
Recognition standard is expected to take effect for public companies in 2017,
and for private companies in 2018.
More information about the Revenue
Recognition project is available at http://www.fasb.org/.
About
the Financial Accounting Standards Board
Since 1973, the
Financial Accounting Standards Board has been the designated organization in the
private sector for establishing standards of financial accounting and reporting.
Those standards govern the preparation of financial reports and are officially
recognized as authoritative by the Securities and Exchange Commission and the
American Institute of Certified Public Accountants. Such standards are essential
to the efficient functioning of the economy because investors, creditors,
auditors, and others rely on credible, transparent, and comparable financial
information. For more information about the FASB, visit our website http://www.fasb.org/.