Accounting standards concerning proper Revenue Recognition guidelines promulgated by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), generated deliberation for a number of years. Recently, FASB issued Accounting Standards update (ASU) 2014-09 on May 28, 2014: Revenue from Contracts with Customers (Topic 606) addressing this issue.

 

Significantly, this update represents noteworthy modifications to the current guidelines on revenue recognition for financial reporting purposes. This paper will discuss how these new standards will influence management and accounting information systems.