In the News – Coming soon! Changes to the way borrowers report revenues
Abstract: The new standard issued in Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, provides a unified set of principles for recognizing revenues — replacing the current mishmash of more than 80 industry-specific revenue-recognition rules. This update is part of a landmark global accounting convergence project that will change how borrowers report the top lines of their income statements. This article explains which borrowers will be most affected, how they will report revenues, and how borrowers and lenders can prepare for these changes.