Paper on the new revenue recognition requirements from the investors' view

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Feb 27, 2018

In February 2018, the CFA Institute, a global association of investment professionals, published "Revenue Recognition: Top Ten Questions Investors Should Be Asking Regarding the Adoption of the New Standard".

Effective January 1, 2018, revenue for all companies following IFRSs and US GAAP will be recognized under a new accounting standard – IFRS 15, Revenue from Contracts with Customers or the FASB's equivalent revenue standard, ASU 2014-09 Revenue from Contracts with Customers (Topic 606).

Much of the discussion so far has centered around it should be applied by preparers, not on how it should be analysed by analysts and investors. The paper now published by the CFA Institute examines the top 10 questions investors should consider as they review year-end 2017 results and consider first quarter 2018 reporting as it relates to the adoption of the new standard.

Review the full paper on the CFA Institute's website.

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