Cash accounting is simple, recognizing income and expenses when cash is received; however, entities that follow accrual accounting find themselves in a discrepancy in how revenues and expenses are recognized based on the entity's binding standard. US GAAP addresses revenue recognition based on industry-specific guidance that IFRS lacks. The two standards have yet to be converged and their future plans are expected to be addressed in 2018. However, as a first step, both organizations have established revenue recognition guidelines for revenue from contracts with customers via IFRS 15 using a five-step method.