It’s no question that revenue recognition is the biggest financial reporting and compliance topic of the year, and several in-depth surveys have revealed that companies are currently underprepared.
While the first official call to improve the practice of recognizing revenue was made over a decade ago, actions from the FASB over the past year – including the most recent deferral - have spurred reaction, commentary and advice from all corners of the industry.
The result has been an immense amount of information about rev rec (and all that it implies) that is helpful, yet overwhelming. This new standard will inevitably impact every single reporting entity in varying degrees, but for most, implementation will be a major undertaking and companies need to start preparing now.
This infographic boils down basic yet critical information about the new rev rec standard including:
- The 5Ws of the ASU
- Various data points on industry readiness
- 3 simple tips for jump-starting your implementation
View the infographic here!
1Cohn, Michael. “Most Companies Unprepared for Revenue Recognition Standard.” Accounting Today. SourceMedia. 30 October, 2015. Web. 2 November 2015. http://www.accountingtoday.com/news/audit-accounting/most-companies-unprepared-for-revenue-recognition-standard-76259-1.html