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September 03, 2012

Comments

Scott Green

Tom:

One good reason for the FASB to take on the project of developing a revenue recognition standard is that US GAAP does not have a revenue recognition standard, which--given the importance of the topic to financial statements--seems a glaring omission. Revenue guidance from the FASB is just a hodge-podge of rulings on special cases.

The SEC stepped in to try to cover for this omission for publicly-traded companies by issuing the standards you noted, and even private companies can apply this guidance. However, as the official purveyor of US GAAP, the FASB has clearly not done its job here.

That the FASB's efforts to remediate this omission have turned into a quagmire is another (big) issue altogether.

Scott

Independent Accountant

TS:

Agree. This project has been a waste of time.

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