IFRS No Relief For Risk And Complexity In Revenue Reporting
New survey by RevenueRecognition.com finds little difference between US and non-US companies.
Canton, MA (Vocus/PRWEB ) November 21, 2008 -- A recent survey by RevenueRecognition.com of 652 senior financial executives in the US and 34 other countries shows that revenue reporting processes are far more complex to manage, prone to error, and material to financial statements than other key finance and accounting processes. More than twice as many respondents from both US and International groups identified revenue recognition as number one in each category. In countries where IFRS is required, the gap between revenue recognition and the next process was even wider.
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The report findings include:
- No relief from complex revenue processes under foreign reporting
- IFRS not likely to reduce risk of errors and inaccuracies in revenue reporting
- Revenue reporting errors have greatest impact on financial statements
- Revenue is a top fraud risk
- Lack of ERP functionality leads to fragmentation of revenue data
"These results clearly show the assumption that revenue recognition will get much simpler under IFRS is a misperception," said Gottfried Sehringer, executive editor of RevenueRecognition.com. "IFRS might provide less specific rules on revenue recognition than US GAAP, but both are based on the principle of properly reporting the earnings process. While certain accounting interpretations may change, the complexity of managing the revenue process and its inherent risk will continue to be a major challenge for many companies - no matter which accounting standard they use. The more streamlined and flexible their processes and systems, the easier they will be able to manage the risks of a transition to IFRS."
Download Information
The white paper, "Risk and Complexity in Revenue Reporting under US and International Standards," is available free of charge at www.RevenueRecognition.com. The survey was conducted in June and October 2008. In all, responses were accepted from 511 US and 141 International senior finance executives.
About RevenueRecognition.com
RevenueRecognition.com is dedicated to educating finance professionals on revenue management and related issues. The site focuses on revenue accounting, revenue recognition, revenue reporting and forecasting, industry specific revenue challenges, Sarbanes-Oxley compliance, internal controls, SEC, FASB, and IASB guideline compliance. RevenueRecognition.com is sponsored by Softrax Corporation, a leading provider of revenue management software solutions. To learn more about Softrax solutions, customers and partners, please visit www.softrax.com. Contact us via email at: info @ RevenueRecognition.com.
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