Write a convergence memo (500-750 words) to the client discussing the current state of convergence between IFRS and U.S. GAAP on revenue recognition. You may use the "Memo Template" provided. In your memo, be sure to address the following:
Describe the similarities and differences in accounting for revenue recognition under the international standards and the FASB standards.
Identify (in general terms) the possible impact on the financial statements of your specific company of changing from FASB to IFRS.
How should these items be disclosed under IFRS and FASB?
Benchmark - Convergence Memo to the Client View Rubric Due Date: Dec 13, 2017 23:59:59 Max Points: 55 Details: Either subscribe (fee) to IFRS or register for the free limited access at http://www.iasb.org/IFRSs/IFRS.htm Write a convergence memo (500-750 words) to the client discussing the current state of convergence between IFRS and U.S. GAAP on revenue recognition. You may use the "Memo Template" provided. In your memo, be sure to address the following: 1. Describe the similarities and differences in accounting for revenue recognition under the international standards and the FASB standards. 2. Identify (in general terms) the possible impact on the financial statements of your specific company of changing from FASB to IFRS. 3. How should these items be disclosed under IFRS and FASB? You must integrate at least two academic sources, in addition to the AICPA website and the IFRS website, in your discussion. While APA style is not required for the body of this assignment, solid academic writing is expected, any documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center. This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. TO: The File FROM: Sonia Torres-Britton DATE: November 5, 2017 SUBJECT: Promises in Contracts With Customers Heading 1 According to the update with 606-10-25-16 which is Promises in Contracts with Customers. It basically states, when entering a contract with the entity to transfer goods and service to a customer. Contract with the customer has to go according to policies, or specific statements entering the contract. Those promises by the entity are understood by the customer that the goods and services will be render. Heading 2 A contract with a customer is in the span the new standard that legally enforce certain criteria are met. When the agreement is not met, the contract is null in void when it not according to the new standard. When the contract is not met the thought giving from the customer is look at as a liability. Additionally, enter contract at the same time or near the same time it’s consider a single contract if criteria are met. Overall, once an entity is in a contract with the customer providing goods and services, the contract is enforced legally, as long as it’s according to the policies. Also, if the contract is not within the new standard, it could be null in void and the customer can reject the contract because it could be consider a liability. REFERENCE IFRS AND U.S. GAAP, (September 2014), Issues In-Depth, Revenue from Contract with Customer, Retrieved on November 5, 2017: http://www.execed.kpmg.com/content/pdf/revenue-from-contracts-with-customers.pdf FASB Accounting Standards Update, (April 2016), Revenue from Contracts with Customers (Topic 606), No. 2016-10, retrieved on November 5, 2017: http://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176168066253&acceptedDisclaimer=true