At long last, the FASB and IASB have issued a converged guidance report on revenue recognition standards. RGP’s own Shauna Watson, Global Managing Director of the Finance and Accounting Practice, reiterates that this will affect ALL companies – all sizes and industries, under both US GAAP and IFRS.
“This highly anticipated guidance will eliminate most industry-specific GAAP and significantly change the recognition of revenue for many companies. Even companies not expecting drastic changes to the amount and timing of revenue recognition will likely be affected by necessary changes in documentation and information systems to track new data requirements and support the additional disclosures, estimates and increased use of management judgment.”
Given the importance of revenue as a reporting metric, the implementation of this guidance and its effects will likely be felt across all areas of your company. Selecting a transition method to these new standards should be a top priority, and consultants from RGP can help guide your organization through this phase.
For help in understanding and implementing these changes, contact us and we’ll put you in touch with the local RGP experts in your market.