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U.S. GAAP Revenue Recognition |
IFRS Revenue Recognition |
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Conceptual framework offers guidance (major project in process to provide revised standard for revenue recognition based on balance sheet changes); specific guidance on limited matters (e.g., software development; construction)
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Some specific guidance offered under IFRS (a separate standard on revenue recognition exists, unlike US GAAP) |
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Generally must amortize revenue over service period, no up-front recognition under GAAP
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More possibility for up-front revenue recognition when performance has occurred |
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Revenue recognition deferred on delivered part of multi-element contract if refund would be triggered by failure to deliver remaining elements
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Revenue generally recognized on delivered part of multi-element contract even if refund triggered by failure to deliver remaining ele-ments, if delivery is probable |
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Revenue-cost and gross-profit approaches to percentage-of-completion both allowed for long-term construction contracts; use of completed contract method under certain circum-stances is required
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If percentage cannot be reliably estimated, use of cost recovery method required; “revenue-cost” approach to percentage of completion mandatory; completed contract method banned |
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Joint project with IASB, likely will adopt new assets and liabilities approach to revenue recognition
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Joint project with FASB, likely will adopt new assets and liabilities approach to revenue recognition |
