New Revenue Recognition Accounting Standard (ASU No. 2014-09) is Coming- Stay Ahead of the Game!
Game Day is here! We aren’t professional athletes, but we all do know that to win the big game, you need preparation, a great coach, a top-notch team, and, a solid playbook.
You may or may not have heard: the way firms recognize revenue is changing after December 15, 2017 (for public companies) and after December 15, 2018 (for private companies). Game day may seem like it’s a ways off, but you may not have as much time as you think. Here’s a list of items you need to think about sooner rather than later!
- The new revenue recognition standard is long and requires a lot of time to read, decipher, and put into action.
- Accounting software systems may need to be updated, which could require the expertise of an IT specialist.
- Debt covenants with banks may need to be revised to align with the new standard.
- Transfer pricing and income tax effects may need to be reassessed.
- Sales incentive programs may be impacted.
- Standard sales contracts should be reviewed and possibly amended.
- Operating procedures may need to be reengineered to capture all the required information.
Let us be a part of your team; we are here to help. We are offering a free 2 hour in-person assessment that will review your company’s current status and identify the potential impact under the new standards.