The decision follows the completion last week of the technical discussion of the joint project by the FASB and the IASB. The vote authorises 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 recognised 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.
Press release
© FASB
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