A Grant Thornton International survey found
that as little as 37% of global businesses support replacing and
amending existing revenue recognition standards.
The study found only 35% of respondents were
aware of proposed changes to revenue recognition standard.
Almost two thirds of respondents thought the
latest joint proposals by the US Financial Accounting Standards
Board and the International Accounting Standards Board on revenue
recognition would lead to increased costs and more
complexity.
Support for standard change was highest in
India (59%), the ASEAN countries (56%) and Latin America (48%).
In the US, 72% believe the proposal will lead
to increased complexity while this drops to 44% in the UK.
Grant Thornton International chief executive
Ed Nusbaum said revenue is a key performance measure for every
business and a single accounting standard in this area is
critical.
“We believe that the IASB and FASB are moving
in the right direction and we’re pleased they’re moving together,”
he said. “The boards have been doing a great job of engaging with
their constituents in their outreach, and the results are evident
in the proposals. The decision to re-expose is also very
positive.”
The IASB and FASB re-exposed the revenue
recognition proposal in November 2011 and the proposal is open for
comment until 13 March 2012.
Grant Thornton international surveyed 2,800
businesses in 40 countries in December.
