After many years of work, the joint project between US and international standard-setters to develop a single accounting model for revenue recognition is on track for completion this summer.

The new standard will replace IAS 11, Construction Contracts and IAS 18, Revenue, which inadequately address the realities of modern business. Meanwhile, US GAAP contains voluminous literature on revenue recognition, so the new standard agreed by the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) will provide substantial streamlining. Comparability of accounting treatments across jurisdictions and industry sectors should be enhanced.