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January 2011 » Will a New Revenue Model Defer...
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Frank Ryerson, PhD
It appears likely that GAAP for revenue recognition will be changing in the near future. Long considered a source of inconsistency in the recognition of revenue for economically similar transactions, the current revenue recognition principles have been put under scrutiny by both FASB and the International Accounting Standards Board (IASB). In September 2002, the boards jointly undertook the revenue recognition project. They hoped to develop a single revenue recognition model that could be applied consistently across various industries.
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