The FASB and the IASB reached convergence on revenue recognition, animportant accounting subject, in recent years. You should do someresearch on how the convergence process evolved on this accountingsubject before both standard-setters eventually issued their respectivestandards addressing this subject. An online search will yield quite abit of history and debate which occurred on this accounting subjectbetween both the standard-setters and feedback from the public,including publicly listed firms. You may be able to find, also, at therespective FASB and the IASB websites, information related to theconvergence process on this accounting subject.

Answer the following questions specifically in your Word documentsubmission by copying and pasting each question in bold type with youranswers below each question:

1. Summarize in a few paragraphs the convergence process on revenuerecognition: How long did it take; was it contentious; what were theareas of disagreement as the convergence process developed; and once thestandard-setters converged, which side went further than the other, inyour opinion, to make the converged standard a reality?
2. In your opinion, did the FASB and the IASB reach convergence onrevenue recognition in the issuance of their respective new accountingstandards?
3. If convergence was not reached, what are the major differences thatstill exist on revenue recognition between the FASB and the IASB? Bespecific in identifying any major differences that still exist,including but not limited to the potential impact on reported revenuesand net income of any existing differences.
4. In your opinion, how did the differences between rules-based andprinciple-based standards influence the debate and ultimately the finalrevenue recognition accounting standard issued by both standard-setters?
5. Once the new revenue recognition accounting standard is implementedby companies around the world in the future, will we really be able tocompare Company A in Industry Z reporting under IFRS to Company B inIndustry Z under the US GAAP? Explain in detail why or why not,justifying your opinion with specific details. You can even pick aspecific company in a specific industry, if you wish, in preparing youranswer to this question.
6. Is either standard-setter still working on the implementation of theconverged revenue recognition accounting standard? If so, what are 1 or2 of the key implementation matters which are still being developedwith regards to the new standard?
7. After doing your research for this Assignment Option, how has youroverall opinion of convergence and the development of a global set ofaccounting standards — the process, the goals, the results to date, andfuture prognosis — changed? Explain in detail.