The Five Steps of Revenue Recognition This week, we take a look at the basic five steps of the new revenue recognition rules from the Financial Accounting Standards Board. The new standards affect all companies using International Financial Reporting Standards — public companies have to implement new standards in annual reporting periods beginning after…
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Revenue Recognition Vocabulary Making sense of the current and upcoming changes requires understanding both the role of the primary organizations involved, and the lingo (as well as current vocabulary with some new twists). In our last post, we gave you an overview of revenue recognition. In the upcoming weeks, we plan to delve into concrete detail…
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Are You Ready for Changes in Revenue Recognition? Changes in revenue recognition were made necessary due to light guidance (especially for the international standards) and inconsistent pronouncements in the US. Companies used to make up their own standards for when to report income. For example, much of what Enron did in the late 90s and…
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