https://kpmg.com/us/en/articles/2022/revenue-accounting.html
Abstract:
The article compares how revenue recognition and disclosures differ under IFRS 15 versus ASC 606 (U.S. GAAP). It outlines the “top 10 differences” between the two frameworks — for example, how shipping and handling may be treated differently, or how performance-obligation identification and disclosure requirements vary. It also explains the implications of these differences for companies preparing financial statements under either standard. The comparison is intended to help preparers, auditors, and investors understand where the two accounting regimes diverge.
Why it Matters:
Many companies — particularly those operating internationally or comparing peers across borders — may report under IFRS or U.S. GAAP, so differences in revenue accounting can materially affect reported results and financial ratios. This article helps stakeholders identify where and why two otherwise similar contracts might produce different revenue outcomes under each standard — critical for comparability, valuation, and audit risk reviews. By highlighting disclosure and recognition differences, the article promotes transparency and better-informed financial-reporting decisions. Lastly, it helps companies anticipate and explain to investors how accounting framework choices may influence their reported financial performance.
