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 the calendar year 2018 for public business entities, and the calendar year 2019 for private companies.
We understand that these standards will have a profound effect on the way that businesses recognize and record revenue.
To help make the application of these standards easier to understand, our experts have broken down the changes and created a series of guides to help you and your business navigate them.
Please see below for our general guideline for private businesses, or click here for a downloadable PDF.
If you’re interested in our other industry-specific guides from the series, please see the following:
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.