Two Sets of Accounting Rules With One Goal: Compliant International Accounting

ARLINGTON, Va., June 30 /PRNewswire-USNewswire/ -- Although the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S. GAAP) share similar principles, the two standards may produce very different results under any given set of facts. Moreover, IFRS does not possess the detailed guidance of the U.S. GAAP.  BNA's latest analysis, Revenue Recognition: International Accounting Standards, strives to eliminate the confusion by providing a detailed examination of the general revenue recognition principles under IFRS.

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"The adoption of IFRS by Brazil, effective in 2010, underscores the importance of understanding the international reporting standards and how they differ from U.S. GAAP," says George Farrah, senior tax and accounting analyst with BNA. "This Portfolio not only provides the guidance needed to meet all IFRS reporting obligations, but it also provides running commentary comparing and contrasting IFRS principles with U.S. GAAP rules. And that is critical at this time, before the proposed single revenue recognition standard is adopted by both FASB and IASB in early 2011."

Portfolio 5104 in BNA's Accounting Policy and Practice Portfolio Series, Revenue Recognition examines the IFRS revenue recognition criteria for the sale of goods and identifies common transactions — including bill and hold sales, consignment sales, and real estate sales — involving the sale of goods.  Authors Richard C. Jones and Elizabeth K. Venuti, both of Hofstra University, also discuss the criteria for recognizing revenue generated from the rendering of services and examine five types of qualifying fees.

In addition, Revenue Recognition examines the general principles of International Accounting Standard (IAS) 18, Revenue, and discusses how these IAS 18 principles apply to the recognition of revenue from the sale of software, a topic governed extensively by U.S. GAAP guidance but not specifically addressed under IFRS.

Richard C. Jones, an Associate Professor of Accounting at Hofstra University, is the former vice president of a banking corporation, a member of the staff of the Financial Accounting Standards Board (FASB), a special projects manager for a foundry company, and a staff auditor in public accounting.

Elizabeth K. Venuti, Associate Professor of Accounting at Hofstra University, is a contributing author for  BNA Portfolio 940, U.S. Income Tax Treaties — U.S. Competent Authority Functions and Procedures.

About BNA Tax & Accounting

BNA Tax & Accounting is the foremost source of news, analysis, and practice tools for tax attorneys, estate planners, accountants, and corporate tax and financial accounting professionals. For more than 50 years, BNA Tax & Accounting has offered practitioners expert insights and guidance on every significant issue in tax planning and financial accounting. Written by practitioners for practitioners, BNA's award-winning Portfolios offer topic-driven, in-depth guidance on transactions designed to help tax professionals achieve new levels of excellence and client service. For more information on BNA's Accounting Policy & Practice series of which this Portfolio is a part, go to http://www.bnatax.com/tm/apps_details.htm or call 800.372.1033.

SOURCE BNA Tax & Accounting