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The Financial Accounting Standards Board (FASB) and its international counterpart—the International Accounting Standards Board (IASB)—introduced ASC 606 and IFRS 15 to ensure that revenue recognition standards were consistent across different industries, geographies, and markets. As these standards apply to “revenue from contracts with customers”, entities in virtually all industries will be significantly affected by the standard.
ASC 606 and IFRS 15 cover sales processes from end-to-end. Dealing with everything from contracts to pricing and quoting, as well as billing, and revenue recognition (its primary focus being revenue recognition). The historical inconsistency in how each company recognized their revenue became more noticeable with the rise of newer models such as subscription-based offerings, and both ASC 606 and IFRS 15 aim to create a globally consistent standard.