Case Studies in the New Recognition Guidance
For many years,
FASB and the IASB sought to overhaul the guidance on revenue
recognition, replacing industry specific conventions with
a common, universal approach focusing on contractual arrangements.
The result, Accounting Standards Update (ASU) 2014-09, focuses
on the satisfaction of contractual obligations in order
for revenue to be recognized.
The New Normal
In 1995, The CPA Journal published an article about
the progress the profession had made on “the problem
of liability. ”The title, Is the Storm Ending?, should
give you a sense of the exasperation CPAs were feeling at
the time. They were beginning to recover from the 1990–1991
recession and the savings and loan crisis, and had been
besieged with a number of extremel.
How to Avoid or Minimize
Fraud cuts a wide swath across businesses and other organizations. The typical organization loses 5% of revenue each year to fraud, according estimates from the most recent Report to the Nations, a survey produced by the Association of Certified Fraud Examiners (ACFE 2014). When
applied to the 2013 estimated gross world product, this revenue
loss translates to a global figure of nearly $3.7 trillion.