The effective date for the revenue recognition standard is here for public companies with calendar year-ends.
The effective date for the revenue recognition standard is here for public companies with calendar year-ends. Companies need to prioritize their revenue implementation projects and engage their audit committees and external auditors when making significant accounting judgements as the new standard is implemented for both the transition disclosures and going forward.
Although companies are rightfully dedicating their attention and resources to implementing the revenue recognition standard, they cannot lose sight of other standards effective in 2018. This includes the recognition and measurement guidance for financial instruments and several other standards intended to clarify or simplify accounting requirements.
Not to be forgotten, the leases standard looms one year later. Companies should begin their implementation efforts now to reduce surprises and increase implementation quality.
Meanwhile, the SEC staff continues to emphasize to companies the importance of remaining focused on their implementation efforts for all major standards.
This publication summarizes these and other accounting and financial reporting developments potentially affecting you in the current period or near term.