Home » Articles » Lexis Nexus Complexus: Comparative Contract Law and International Accounting Collide in the IASB––FASB Revenue Recognition Exposure Draft

Lexis Nexus Complexus: Comparative Contract Law and International Accounting Collide in the IASB––FASB Revenue Recognition Exposure Draft

PDF · Kurt S. Schulzke, Gerlinde Berger-Walliser, Pier Luigi Marchini · Apr-11-2013 · 46 VAND. J. TRANSNAT’L L. 515 (2013)

U.S. and international accounting-standard setters plan to launch a new, global revenue accounting standard, Revenue from Contracts with Customers, in 2013. Poised at the nexus of comparative contract law and international accounting, the proposal’’s contract-based revenue recognition model creates new legal risks and opportunities for accountants, lawyers, clients, and financial statement users. Despite its focus on legally enforceable contracts, the proposed standard was drafted without input from the legal community. This Article models the proposal’’s complex contract-analysis process, demonstrating that its revenue outcomes may vary materially because of seemingly minor interjurisdictional differences in law applicable to ““open-price”” contracts; offers practice pointers for attorneys, accountants, and auditors; recommends changes to the proposal, including the substitution of self-enforcing Nash equilibria for legally enforceable contracts; and encourages more collaboration between the legal and accounting professions in the joint deployment of legal and accounting expertise for better value creation, value allocation, and risk mitigation.

 




One Response to “Lexis Nexus Complexus: Comparative Contract Law and International Accounting Collide in the IASB––FASB Revenue Recognition Exposure Draft”

  1. There’s certainly a lot to know about this subject.
    I love all the points you have made.

    posted on April 7th, 2016 at 5:06 am

Leave a Reply

ExpressO Top 10 Law Review

ANNOUNCEMENTS

Please join us in congratulating the Vanderbilt Journal of Transnational Law 2016-2017 Write-On Competition Winners.

Read the Journal’s latest issue (Vol. 49 No. 3) here.

Video is available from the Vanderbilt Journal of Transnational Law‘s last symposiumThis is Not a Drill: Confronting Legal Issues in the Wake of International Disasters. Watch them here.

We are pleased to announce the 2016-2017 Board of Editors.

Explore Other Vanderbilt Law Resources