Why is it difficult to compare IAS 18, Revenue, to U.S.GAAP?
A)The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S.GAAP is straightforward.
B)Revenue is not defined under U.S.GAAP.
C)There is no single standard in U.S.GAAP that deals solely with revenue.
D)Under U.S.GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.

Question

Quizplus · Accepted Answer

Unlike IAS 18, U.S.GAAP does not have a singular standard that deals explicitly with revenue. Instead, revenue is addressed in different standards such as ASC 606 for contracts with customers, ASC 606-10 for revenue from contracts with customers and ASC 605 for revenue recognition. This makes it difficult to compare IAS 18 to U.S.GAAP, as their approaches to revenue recognition vary depending on the specific standard being used.

Why Is It Difficult to Compare IAS 18, Revenue, to U.S.GAAP