For most companies, the amount of revenue that is earned is an important metric and is closely monitored by senior management, owners, investors and lenders. However, recognizing revenue in financial statements can be a complex and challenging exercise because of the complexity of the standards and estimates that must be evaluated. This complexity has increased as a result of the Financial Accounting Standards Board (FASB) issuing in May 2014 the Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606), which replaces virtually all existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).
We are committed to helping you navigate this complex and critical issue. For many, the new standard — the first part of which is 156 pages long — will require significant effort to read, understand and apply to the financial reporting process. Our most recent Biz Tips video, How to Adopt the New Revenue Recognition Standard, is designed to help you learn about the new guidance and how it affects your business in an easier way.
If you have further questions regarding the new standard, feel free to contact Brad Hale, CBIZ MHM Managing Director, at 727.572.1400 or firstname.lastname@example.org.