The FASB and the IASB agreed that the fundamental characteristic of revenue recognition is that
A) the term revenue means different things to different companies in different countries.
B) revenue should be recognized when it is earned.
C) revenues are recognized and measured based on changes in assets and liabilities.
D) the number of disclosures required for revenue recognition should be held to a minimum.

Question

Quizplus · Accepted Answer

The FASB and IASB have established that revenue recognition is fundamentally based on changes in assets and liabilities, aligning with the concept that revenue is recognized when a company satisfies a performance obligation, leading to changes in financial position.

The FASB and the IASB Agreed That the Fundamental Characteristic