Inherent Difference Between US GAAP and IFRS on Revenue Recognition
, Download 1
, Case Study
The timing and measurement of revenue, and the associated expenses, are subject to detailed guidance in the GAAP and general guidance in the IFRS, which specifies the conditions for recognizing revenue before, at, and after the time of sale. The seller necessity is to have earned revenues in the sense that it has performed, or substantially performed, its obligation to the buyer, and it can constantly estimate the cash or cash equivalent value of assets received from the customer.