As you may have heard, last week FASB issued a proposed Accounting Standards Update that would defer the effective date of its new Revenue Recognition standard by one year. Just because FASB has given more time, it does not mean you should delay investigating the impact it could have. The delay was provided to give companies adequate time to prepare. Revenue Recognition changes could impact wording in contracts, tax planning strategies, budgets, debt covenant compliance, incentive compensation plans and more.
Want to learn more about what effects this delay could have? Watch the video below where Jennifer F. Louis, CPA (Director of Audit Product Development for Surgent) explains!
Understanding the New Revenue Recognition Standard (REV4)
FASB’s ‘Big 3’: Revenue Recognition, Leases, and Financial Instruments (FSBT)
Annual Accounting and Auditing Update (ACAU)