The document discusses the new revenue recognition standard issued by the FASB and IASB in 2014. It summarizes the core principle of the new standard which is to recognize revenue when control of goods or services are transferred to a customer. It outlines the 5-step model for revenue recognition which includes identifying performance obligations, determining transaction price, allocating price to obligations, and recognizing revenue when obligations are satisfied. The standard represents a principles-based approach to revenue recognition and is expected to impact how the topic is taught with a focus on the new 5-step model.