Final answer:
The converged accounting standards issued in May 2014 primarily addressed the development of new, unified standards for revenue recognition released by the FASB and IASB, enhancing global comparability and efficiency in financial reporting.
Step-by-step explanation:
The converged accounting standards issued in May 2014 refer to the joint efforts by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to create a unified set of accounting principles. This convergence aimed to create a common language for businesses and investors worldwide, thus improving consistency, comparability, and efficiency in global financial markets.
One significant outcome of this collaboration was the development of new standards for revenue recognition, specifically the FASB's Accounting Standards Update (ASU) 2014-09 and the IASB's International Financial Reporting Standards (IFRS) 15, both titled "Revenue from Contracts with Customers." These new standards set out a single and comprehensive framework for revenue recognition across various industries, detailing how and when to recognize revenue from contracts with customers.
The move towards converged standards was also part of a wider effort to harmonize accounting practices, which benefits multinational corporations and international investors by reducing the complexity and cost of financial reporting in different countries.