After years of work, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued ASU 2014-09, the Revised Revenue Recognition Model. The model is intended to harmonize what had been a collection of over 200 specialized revenue recognition systems under US GAAP, and provide a more principle-based framework for business in different countries, or in situations not covered by the previous arrangement. While in the long run these revised standards should make revenue recognition both more consistent and more flexible, adoption and application will unquestionably present some challenges, particularly for construction companies.

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