However, EFRAG has a fundamentally different view from the IASB as to when revenue should be recognised. It also criticizes that the IASB does not further explain why it regards revenue as an important figure.
EFRAG believes that revenue recognition is the cause of many practical problems and that it will help all the IASB's constituents if the existing material on the subject could be enhanced.
However, EFRAG has a fundamentally different view as to when revenue should be recognised and criticizes that the IASB does not further explain why it regards revenue as an important figure.
EFRAG believes the financial statements would be most decision-useful were revenue a measure of activity carried out to fulfil a contract with a customer.
Deadline for comments is 3 June.
Draft Comment Letter on Revenue Recognition.
© EFRAG - European Financial Reporting Advisory Group
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