International Standard for Revenue Recognition. Reuters reports that the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB)agree that revenues should be recognized based on fair market value, however, there is no consensus on how fair market value is to be determined.

The approach being considered will allow investors to gauge a company's revenue stream by looking at the changed values of assets and liabilities reported in the balance sheet, rather than looking at 'revenues' in the income statement as is done today. . . . transactions will be recognized as positive revenue generators only if they increase assets or decrease liabilities. The company would have to spell out the fair value, or latest market value, of the asset or liability on a given date.

However, the proposal is not free of obstacles. FASB and IASB officials say they have yet to figure out the best approach to arrive at the fair values. "This is the most difficult part and we are still looking at this problem," said an IASB official who requested anonymity.