Heads Up — Observations From a Review of Public Filings by Early Adopters of the New Revenue Standard

Published on: Jan 22, 2018

As a result of the recognition and measurement requirements in the FASB’s new revenue standard (ASC 606), some companies will need to make wholesale changes to their financial statements. For other companies, the effect of the new requirements will be less significant. However, all entities will need to carefully consider the standard’s new and modified quantitative and qualitative disclosure guidance, which will significantly increase the amount of information they should disclose about revenue activities and related transactions. Accordingly, since the standard’s mandatory adoption date2 has either arrived or is rapidly approaching, companies are sharpening their focus on those disclosure requirements.

This Heads Up provides insight into our review of the disclosures in the public filings of a group of companies that early adopted the standard in 2017. Entities adopting the standard beginning in 2018 may benefit from evaluating the disclosure trends we have observed as a result of this review. For a comprehensive discussion of the new revenue standard, see Deloitte’s A Roadmap to Applying the New Revenue Recognition Standard.

This publication was released by our US firm.

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