Rethinking Revenue Recognition– Critical Perspectives on the IASB’s Current Proposals –

Acknowledging deficiencies in current regulations and aiming at convergence, theIASB is conducting a joint project with the FASB to develop a principle-based standardon revenue recognition. The tentative proposals feature an asset-liability approachrelying on measurement at fair values or at allocated consideration amounts. Based onconceptual, analytical, and empirical evidence, this paper finds that the currentproposals conflict with (i) qualitative characteristics of information, (ii) objectives offinancial reporting, and (iii) current and emerging regulatory framework.[...]