Revenue Recognition The WritePass Journal

Revenue Recognition Generally Accepted Accounting Principles: Revenue Recognition ). While the new revenue recognition model provides a detailed basis for accounting standards and has defined a wide scope for the proper classification of transactions, the feedback received has suggested that the model is too complex and confusing for immediate implementation as it is inconsistent with previous frameworks and would require practice and getting used to in implementation. Moreover, other users have also mentioned that the model requires additional information regarding the meaning of certain rules and terms in order to be accurately implemented and used within all firms such as the meaning of â€Å"collaborator†. It is suggested that the Board review the new accounting principles that it has introduced and provide detailed explanations and examples of how to appropriately apply the standards to financial statements. It is also highly suggested that in order to improve the applicability of the new revenue recognition model, the inconsistencies between the previous model and the new model must be removed, the terms used in the new model must be clarified, and the suggested additions may be made. References Cairns, D. (2006). â€Å"The use of fair value in IFRS.†Ã‚  Accounting in Europe. Vol.  3(1) pp. 5-22. Hodgdon, C., Tondkar, R. H., Adhikari, A., Harless, D. W. (2009). â€Å"Compliance with International Financial Reporting Standards and auditor choice: New evidence on the importance of the statutory audit.†Ã‚  The International Journal of Accounting. Vol.44(1) pp.33-55. Olsen, L., Weirich, T. R. (2010). â€Å"New revenue†recognition model.†Ã‚  Journal of Corporate Accounting Finance. Vol.22(1) pp. 55-61. Schipper, K. A., Schrand, C. M., Shevlin, T., Wilks, T. J. (2009). â€Å"Reconsidering revenue recognition.†Ã‚  Accounting Horizons. Vol. 23(1) pp. 55-68. Wagenhofer, A. (2013).  The Role of Revenue Recognition in Performance Reporting. Working Paper, University of Graz. Wà ¼stemann, J., Kierzek, S. (2005). â€Å"Revenue recognition under IFRS revisited: conceptual models, current proposals and practical consequences.† Accounting in Europe. Vol. 2(1) pp.69-106.