Why is it difficult to compare IFRS15/ASC606, 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

U.S. GAAP does not have a single standard that deals solely with revenue, whereas IFRS 15/ASC 606 focuses solely on revenue recognition. Therefore, it is difficult to compare the two standards directly. Additionally, the IASB definition of revenue is not necessarily more complicated than that of U.S. GAAP, as both standards require significant judgment and interpretation in applying the rules to specific transactions.

Why Is It Difficult to Compare IFRS15/ASC606, Revenue, to U