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 short industry-specific guides to help you and your business navigate them.
This introduction to the series is a general summary of changes which includes the five primary steps that these new standards have established for recognizing revenue. Please see below, or click here for a downloadable PDF.
Be sure to keep an eye out over the next four weeks for rest of this series, including industry-specific guides for the Not-for-Profit, Construction, Manufacturing, and Retail and Distribution industries.
For more information on revenue recognition, please contact us at firstname.lastname@example.org and we’ll connect you with one of our experts.