Our five-part series on revenue recognition has covered the first four steps in the Financial Accounting Standard Board’s (FASB’s) Revenue from Contracts with Customers (referred to hereafter as “the standard”): identifying contracts, determining performance obligations, determining transaction price, and allocating transaction price. We’ve arrived at the fifth and final step: recognizing revenue. Step 5 of [...]
So far in our five-part revenue recognition series, we have covered the first three steps in the Financial Accounting Standards Board’s (FASB’s) Revenue from Contracts with Customers (referred to hereafter as “the standard”): identifying contracts, determining performance obligations, and determining transaction price. In this part of the journey, we discuss the fourth step of recognizing [...]
So far in our five-part series on revenue recognition, we have covered the first two steps in the Financial Accounting Standard Board’s (FASB’s) Revenue from Contracts with Customers (referred to hereafter as “the standard”): identifying contracts and determining performance obligations. In this article, we discuss the third step of recognizing revenue: determining transaction price. [...]
Finding a direct route to implementing the new revenue recognition standard is difficult – but not impossible. In this first article of our five-part series, we’ll begin you down the path toward successful implementation. Step 1 of Revenue Recognition: Identify Contracts Identify Customer Contracts Identify Performance Obligations Determine Transaction Price Allocate Transaction Price [...]
In the first article of our five-part series about revenue recognition, we gave an overview of the Financial Accounting Standard Board’s (FASB’s) Revenue from Contracts with Customers (referred to hereafter as the “standard”) and addressed the collectability issues that may arise from step one of the standard: identifying contracts. In this article, we highlight the [...]
The new revenue recognition standard could drastically changes how healthcare entities (particularly hospitals) recognize revenue – specifically, when and how much to recognize. Watch as Bryan Hall provides an overview of these changes, as well as the data that hospitals should begin collecting now to implement the new mandate.
Submarines adapt to their environments in a variety of ways. For example, they use sonar (an acronym for SOund Navigation And Ranging) to detect or communicate with other objects in the water. Similarly, organizations across many industries are changing their processes to prepare for the Financial Accounting Standard Board’s (FASB’s) new revenue recognition standard. Amidst [...]
The Financial Accounting Standards Board's (FASB's) new revenue recognition standard can have significant implications for your company's finances. Watch as Bruce Nunnally explains the breadth of the impact of this standard.
Extra, Extra! Read all about it: The accounting change of the decade - revenue recognition implementation - is here! Well, sort of?!? The Revenue Recognition Implementation Headline The new revenue recognition standard was released in May 2014 and aims to increase consistency and comparability in today’s global marketplace by instituting a five-step revenue recognition model [...]
If you own a business or serve on the management team, then revenue matters to you because that is how most businesses are measured—whether internally by management or externally by lenders and investors. Additionally, as businesses mature, they often outgrow the cash revenue recognition model and utilize a more sophisticated model to better [...]
The new revenue recognition standard will significantly impact most industries – and particularly those with specialized recognition models (e.g. construction, real estate, telecommunications). Watch as CRI’s Jon Heath explains how revenue recognition permeates daily business activities by impacting compensation models, contracts, and taxes. And, therefore, why it’s important to begin implementation of the [...]
The Financial Accounting Standards Board (FASB) proposed a dramatic change in the way companies—including those in construction—accounted for revenue under Generally Accepted Accounting Principles (GAAP). These changes are a direct result of plans to converge GAAP and the International Financial Accounting Standards (IFRS). The goal is to reconcile different accounting standards and practices in revenue recognition, [...]