FASB issues PIR report for its revenue recognition standard

FASB has issued the report on Post-Implementation Review: Revenue from Contracts with Customers (Topic 606). 

The Post-Implementation Review (PIR) process is an important quality control mechanism built into the FASB’s standard-setting process to evaluate whether a standard is achieving its objective by providing investors and other financial statement users with relevant information in ways that justify the cost of providing it. 

“During the Revenue PIR process, we obtained an even greater appreciation for our stakeholders’ commitment to the high-quality implementation of a standard,” stated FASB Chair Richard Jones. “We were also pleased to learn that most stakeholders agree that, while there are lessons to be learned, overall, the revenue standard’s long-term benefits outweigh the costs of applying it.” 

The report discusses how the FASB staff conducted the Revenue PIR process, which included outreach with more than 2,200 stakeholders from diverse backgrounds, key implementation support provided throughout the adoption of the revenue standard, and using what was learned during the PIR process to improve the revenue standard and, more broadly, the standard-setting process.