We hope this survey provides the FASB and IASB with some valuable feedback from corporate America about this proposal and helps highlight some of the business issues that will require more attention in order to make this new approach to revenue recognition viable for everyone
Canton, Mass. (Vocus) June 9, 2009
Today, RevenueRecognition.com submitted a comment letter to the Financial Accounting Standards Board (FASB) concerning the impact of its proposal for a new approach to revenue recognition. The comment letter summarizes the findings from a recent survey of financial executives from 515 companies about the merits of a contract-based approach to revenue recognition.
The RevenueRecognition.com comment letter includes the report ''A New Model for Revenue Recognition,'' published by RevenueRecognition.com, which addresses many questions raised by the Boards in their proposal. The research shows that the proposal has the support of more than half of those surveyed, however respondents with complex customer arrangements voiced much less support and some strong concerns. The key issue was whether contracts can capture ongoing changes in complex business relationships efficiently enough to be the sole basis for revenue accounting.
"We hope this survey provides the FASB and IASB with some valuable feedback from corporate America about this proposal and helps highlight some of the business issues that will require more attention in order to make this new approach to revenue recognition viable for everyone," said Gottfried Sehringer, Executive Editor of RevenueRecognition.com.
The full report, ''A New Model for Revenue Recognition,'' is available free of charge at http://www.RevenueRecognition.com. The survey was conducted in April 2009. In all, responses were accepted from 515 high-ranking finance and accounting executives including VPs, Directors, CFOs, and Controllers. For more information, contact us by email: info(at)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 http://www.softrax.com. Contact us via email at: info(at)RevenueRecognition.com.
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