International update August/September 2024

IASB and FASB reviews of revenue standards

Between 2008 and 2016, the IASB and the FASB collaborated on the development of a number of significant standards, including one on revenue recognition, which was their greatest success. Today, the current members of the two boards have good reason to be grateful to their predecessors as the ongoing reviews of the performance of their standards are positive. Nevertheless, they need to decide whether to address certain areas where some respondents asked for minor amendments, including clarifications. The issue they face is that if either board makes a specific change but the other does not, there will be more divergence between their requirements.