Revenue Recognition: Change is Coming

• In Event: Big Data, Taxation, Future education & Revenue Recognition

Abstract

The Financial Accounting Standards Board and the International Accounting Standards Board have partnered together to create a set of common revenue recognition standards for all industries to follow. They created the Accounting Standards Codification 606: Revenue from Contracts with Customers with a purpose of removing inconsistencies in revenue requirements, providing a more robust framework for addressing revenue issues, improving comparability, improving disclosure requirements, and simplifying the preparation of financial statements. Although organizations may not have material changes to their financial statements, they will experience significant impacts in additional areas during the implementation process. A comparison of ASC 605 and ASC 606 along with some practical examples will help bring clarity to the required changes and the influence it will have on organizations going forward.

Author

• Lynn H. Clements, Florida Southern College