Introduction & Intent of Project The International Accounting Standards Board (IASB) and The Financial Accounting Standards Board (FASB) have undertaken a joint revenue recognition project that clarifies the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. This project will apply to all contracts with customers except leases, financial instruments and insurance contracts. The joint project will attempt to remove inconsistencies and weaknesses in existing revenue recognition standards by retrofitting, and thoroughly improving the recognition framework. The project provides a single revenue recognition model to improve comparability over a range of firms
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GAAP and IFRS. PPL commends FASB on "their initiatives for the issuance of high quality accounting standards that provides transparency in financial statements and meets the needs of investors and market participants." Personally, I agree with Vincent on the fact that, although revenue recognition varies from industry to industry, having a common revenue standard will increase consistency and comparability of financial statements among firms and industries.
Although Vincent is commending FASB on their proposal and fully agrees with it, he had requested that the comment period be extended on the exposure draft so that it could be meshed with most firms’ year-end financial reporting calendars. I personally disagree with Vincent on his past request to extend the comment period, because the prior date, March 13 2012, was only one month shorter than the date Vincent requested it be pushed back to. I believe that not much more information and feedback could have been added within the month Vincent had requested. Also, since this exposure draft had been up for comment since November 2011, I believe mostly all users who would have commented feedback, had already done so (or would have done so by March 13, 2012). I believe that if the comment period had been un-usefully extended, it could have possibly discouraged