Implementing the new revenue standard: No time to lose

Description

Abstract: In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of its new revenue recognition standard by one year. Unfortunately, that doesn’t mean that all companies should relax their implementation efforts. This article discusses why it’s necessary to get prepared by assessing the impact on how — and when — revenue is reported, identifying areas in which management will need to rely more heavily on judgment and estimates, determining the nature and extent of required disclosures, and so forth. A brief sidebar discusses a 5-step program regarding recognizing revenue.