The Impact of the Revenue Recognition Project
Loading...
Date
2014-06
Authors
Jack, Keenan
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
I examined the impact of the revenue recognition project, which was produced
jointly by the Financial Accounting Standards Board and the International
Accounting Standards Board as a way to improve the current accounting
guidelines. I determined that, when implemented, the proposed standard would
impact entities in three different ways. First, entities would incur implementation
costs. Second, entities may restructure their business practices in response to the
standard. Third, financial statement changes would occur for some entities.
Specifically, I estimated that airline revenue would decrease by approximately
10% in the year the proposed standard is implemented because of the deferral of
revenue from frequent flyer programs. These estimated impacts are due to the
substantial differences between current United States Generally Accepted
Accounting Principles and the proposed guidance in the revenue recognition
project. The findings in this thesis suggest that some entities will need to prepare
for the substantial changes associated with the implementation of the revenue
recognition project.
Description
47 pages. A thesis presented to the Department of Accounting and the Clark Honors College of the University of Oregon in partial fulfillment of the requirements for degree of Bachelor of Arts, Spring 2014.
Keywords
Revenue Recognition, Deferred Revenue, Convergence, GAAP, Frequent-Flyer miles