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.