US STANDARD SETTERS are considering whether to delay the date by which companies must shift to new rules around revenue recognition, one of the biggest changes to accounting standards in more than a decade.
Last year, the global accounting standard setter the IASB and US counterpart FASB agreed a converged accounting standard that will overhaul the way businesses record revenue on their books, allowing investors to better compare how much companies from countries around the world earn.
Companies using IFRS will need to apply the new standard for reporting periods beginning on or after 1 January 2017, while for US public companies the standard is scheduled to take effect for reporting periods beginning after 15 December 2016.
FASB plans to decide early in the second quarter whether to propose a delay to give companies more time to prepare before the new rules come into effect, Bloomberg reported.
A number of US companies, particularly telecom and technology companies, want the rule deferred because applying the standard will require lengthy changes to their systems.
The IASB has issued amendments to its existing insurance contracts accounting standard, IFRS 4
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