In May of 2014, the Financial Accounting Standards Board (FASB) issued its new revenue recognition guidance in Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The International Accounting Standards Board (IASB) also issued its new revenue recognition guidance in IFRS 15, Revenue from Contracts with Customers. Since then, the FASB has issued many amendments to the pending content designed to aid in the implementation of the new standard.
Public companies have spent the past several years planning and implementing this significant and often daunting standard. Since most private companies are now beginning the process of analyzing and implementing the requirements of ASU 2018-09 (Topic 606) and its many amendments, it is time to take a closer look at the current guidance to facilitate a smooth and effective transition to the new revenue recognition model for private companies, which do not have the resources of their larger public brethren.
Download this white paper to learn which factors should be considered when implementing the new guidance.