The principle of revenue recognition has long been the domain of a company's finance department, but, in professional services firms especially, it has a major impact on all aspects of a business. In fact, when it is not properly adhered to or managed, it not only hits the balance sheet, it can also make front page news.
New rules governing revenue recognition for companies will go into effect on January 1, 2018 for public companies, and January 1, 2019 for private firms. The Financial Accounting Standards Board (FASB), which administers Generally Accepted Accounting Principles in the U.S. (US-GAAP) has issued ASC 606, and the International Accounting Standards Board (IASB), which administers International Financial Reporting Standards (IFRS) used in most other countries, has issued IFRS 15. Both will enforce similar, fundamental changes to the revenue recognition process for any company that depends on complex contracts in their dealings with customers.
Download our eBook to learn Do's, Don'ts, Best Practices, and more when it comes to Revenue Recognition and the new laws.