Following some delays this fall, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) are moving forward with a global accounting standard for how all businesses record revenues. With an expected publish date in early 2014 and a 2017 effective date, businesses will have more time than originally expected to adopt the revenue recognition standard. This change in how revenue is recognized will affect accounting for virtually all businesses, including construction accounting, energy accounting and manufacturing accounting. The auditors at Doeren Mayhew offers the following information.

Background on GAAP and New Accounting Standards

In June 2010, FASB and IASB proposed several new accounting standards in line with the goal of converging U.S. and international accounting rules. The boards believe that U.S. generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) can be improved by developing one global standard on revenue recognition.


U.S. GAAP comprises broad revenue recognition concepts and numerous requirements for particular industries or transactions, which can result in different treatment of economically similar transactions.  IFRS has fewer requirements on revenue recognition, but can be difficult to understand and apply.

2014 Changes in revenue recognition standards are designed to:

    • Remove inconsistencies and weaknesses in existing revenue requirements
    • Provide a more robust framework for addressing revenue issues
    • Improve comparability across companies, industries and capital markets
    • Provide more useful information through improved disclosure requirements
    • Simplify financial statement preparation by streamlining the volume of accounting guidance

For more information on the changes and how to prepare for 2014 global accounting standards, download our e-paper, “Revenue From Contracts With Customers: Understanding Proposed ASU No. 2011-230,” and contact our auditors in Michigan, Houston or Ft. Lauderdale.


Doeren Mayhew CPAs and advisors is a certified public accounting firm serving businesses nationwide from offices in Michigan, Houston and Ft. Lauderdale. Our award-winning CPAs and investment bankers provide comprehensive accounting and consulting services, specializing in domestic and international tax planning, construction accounting, manufacturing accounting, mergers and acquisitions, lawsuits and litigation support, business valuations and more. Combining a deeply rooted history with a progressive mindset, the firm offers insight into the business, oversight to ensure best practices and foresight for what’s ahead. Visit for more information.