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Why is it difficult to compare IAS 18, Revenue, to U.S. GAAP There is no single...

Why is it difficult to compare IAS 18, Revenue, to U.S. GAAP There is no single standard in U.S. GAAP that deals solely with revenue or Revenue is not defined under U.S. GAAP?

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According to International Accounting Standard 18 - Revenue should be realised when significant risks and rewards of ownership are transferred to the buyer, managerial involvement and control have passed and when the amount of revenue can be measured reliably.

Us GAAP recognises revenue on accrual accounting basis, that revenues are recognised - When realised and earned not when cash is received.

It is difficult to compare the International Accounting Standard - 18 Revenue recognition with US GAAP because there is no single standard in US GAAP that deals solely with revenue. According to US GAAP revenue recognition is a straight forward, for example revenue is recognised when product is sold. But sometimes Accounting for revenue is complicated for example when the company takes long time to produce the product. It may include many situations of exceptions to revenue recognition. But IAS 18 has recognised revenue in a broader view which provides solutions to many difficult situations included in revenue recognition.

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