Only 38% of businesses believe that new global revenue recognition changes are needed, according to a global business survey commissioned by Grant Thornton International.
As businesses await the release by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) of the final global revenue recognition changes, the survey conducted by Experian, surveying 3.200 businesses in 44 countries, found that a majority of the respondents thought that the joint proposals would lead to increased cost and more complexity.
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The survey also revealed that only 38% of the respondents were aware of the upcoming revenue recognition changes.
"Some may argue that the current standards aren’t broken, but we think there are serious problems," Grant Thornton International chief executive Ed Nusbaun said.
"We anticipate that the changes will require that every company provide more disclosure about its revenues, which will benefit investors who have complained about a lack of transparency."
A final standard is now expected in September 2013 and would be effective for annual periods beginning on or after 15 December 2016 for the FASB or 1 January 2017 for the IASB.
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By GlobalData
