Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Some background articles on the new Revenue Recognition rule – ASU 14-09

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Here are a few of the earliest articles I’ve seen to give some orientation to what is involved in applying the new guidance for revenue recognition:

5/28 – Wall Street Journal – Michael Rapoport – New Rules to Alter How Companies Book Revenue
Two sentence summary of the impact:

The new rule’s impact will be most felt in a handful of industries in which goods and services are “bundled” together and parts of that package are provided long before or after customers pay for them. These include such benefits as maintenance that comes with the purchase of a new car, or software upgrades given to customers who bought the original program.

5/28 – Journal of Accountancy – New revenue guidance: Six thing to consider – Disclosures will be big issue. Most affected industries are expected to be software, telecom, and real estate.

5/29 – Journal of Accountancy Accounting may need help in revenue recognition implementation – Assemble the company-wide team soon. You will need lots of help from IT, legal, operations, sales, investor relations.

5/28 – PwC – In brief: Revenue recognition – The future is here (No. 2014-09) – Two page summary can be found in this pdf.

Written by Jim Ulvog

June 9, 2014, 6:29 am at 6:29 am

Posted in Accounting

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