By: Stephanie McGuire and Zachary Bromwell
The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, to align accounting standards, reduce industry-specific complexities, and shift the thought process of recording revenue from a rules based process to a principles-based approach.
This new standard replaces nearly all existing revenue recognition guidance and will go into effect in calendar year 2018 for public business entities, and calendar year 2019 for private companies.
We understand that these standards will have a profound effect on the way that your business recognizes and records revenue. To help make the application of these standards easier to understand, we’ve created a series of short guides to help you navigate these changes. Last month we released the general guidelines to recognizing revenue under the new standards, which can be found here: What you NEED to know about the new revenue recognition standards.
This, the third industry-specific guide in this series, is focused on how these new standards will apply to the Manufacturing industry. Please see below, or click here for a downloadable PDF. The PDF includes the general guidance in addition to the Manufacturing specifics listed below.
If you’re interested in the other guides from the series, please see the following:
For more information about this topic, please contact us at email@example.com and we’ll connect you with one of our Manufacturing experts.
STEPHANIE MCGUIRE, CPA, is a Director in the Audit, Accounting and Consulting Department of Ellin & Tucker. With more than a decade of expertise, Stephanie has helped develop the firm’s manufacturing, wholesales distribution and not-for-profit industries, as well as employee benefit plans engagements, both nationally and internationally. In addition to her financial reporting and business consulting expertise, Stephanie is a leader in Ellin & Tucker’s quality control standards department, which provides the latest accounting pronouncements and standards updates to professionals in the firm. She may be reached at firstname.lastname@example.org.
ZACHARY E. BROMWELL, CPA, MBA, is a manager in the Audit, Accounting and Consulting Department. Zach brings nearly a decade of expertise in providing financial statement audit, review and compilation services, as well as employee benefit plan audits, for clients in numerous industries, including construction, distribution, government contracting, manufacturing, real estate and technology. Zach is also a member of firm’s Audit and Accounting Technical Standards Committee, which is responsible for communicating technical guidance to firm personnel, management and ownership. He can be reached at email@example.com.