Impact of New Revenue Recognition Rule on the Russell 3000
May 11, 2018
On May 11, 2018, Audit Analytics posted an analysis on how as Russell 3000 public companies with December year-ends implement the new revenue recognition standard, they are beginning to see a pattern – smaller companies provide fewer details and generally are not as prepared as larger companies.
Smaller companies may lack resources to make timely accounting changes, resulting in an implementation lag and significant issues, including restatements and control weaknesses.
Looking at 2,803 Russell 3000 companies that referenced ASC 606 in Q4 financial statements, they considered the following factors when assessing a company’s implementation process:
- Adoption Method Used
- Control Weakness
- Impact Disclosure
- Revenue streams and specific areas of accounting affected
- Other impacts
- Completion stage
- SEC Comment Letters
- Outlook
Review the analysis on Audit Analytics' website.
