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

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27 Feb 2018

The CFA Institute, a global association of investment professionals, has published 'Revenue Recognition: Top Ten Questions Investors Should Be Asking Regarding the Adoption of the New Standard'.

Effective 1 January 2018, revenue for all companies following IFRSs and US GAAP will be recognised 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.

Please click to access the full paper on the CFA Institute website.

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