Beginning in 2017 all companies applying IFRS or U.S. GAAP will be required to report revenue under new guidance issued recently by the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The impact of the new guidance may be substantial for some companies and industries.
To assist our members and other investors with this process, CFA Institute offered a webinar in conjunction with the IASB and FASB. This webinar, which featured FASB Board Member, Marc Siegel, IASB Board Member, Patrick Finnegan, and CFA Institute staff, discussed:
- An overview of the newly released revenue recognition standard as it impacts investors.
- Questions investors should consider as a part of their analysis and evaluation of companies.
- Areas of greatest potential impact for change.
While the effective date may seem well into the future, investors should begin now to familiarize themselves with the new guidance and how it may affect the companies they follow given the importance of revenue to the analytical and investment decision-making process. Analysts and investors need to begin to ask questions now as companies begin to undergo this transition to ensure they understand the consequences of the changes.
This is an edited recording of a live webinar that took place on 27 June 2014.