Revenue recognition – Pain points beyond the accounting

Published on: Aug 24, 2017

The countdown has begun. In less than five months, public companies that operate on calendar year-ends will be required to implement the Financial Accounting Standards Board’s (FASB) new revenue recognition standard, ASU 2014-09, Revenue from Contracts with Customers.

Given that the new standard is more principles-based than the existing one, finance professionals will need to apply more judgment to accounting decisions going forward. But, it’s the broader ramifications – the impacts to information technology systems and human resources policies, as well as the time and resources required to complete the necessary changes – that should have CFOs even more concerned.

In fact, those broader implications may find companies working on adjustments well into 2018. In this issue of CFO Insights, we will look at the multiple tentacles of the new standard, and outline some of the things CFOs need to prepare for – and how they can reduce surprises.

This publication was released by our US firm.

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