The enactment of the Tax Cuts and Jobs Act (TCJA) in December of 2017 led to one of the more chaotic tax filing seasons in recent memory. The new law included several provisions that affected bonus depreciation treatment and calculations, and some taxpayers may have filed their returns without fully considering the different options that [...]
Any new accounting standard can throw us for a loop, but the new revenue recognition standard has made an especially strong impact. Not all revenue-generating activities fall under the purview of the new standard, but the changes are far-reaching and will affect a multitude of revenue streams in almost all industries. Public organizations should have [...]
Accounting Standards Update (ASU) 2018-08, titled Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made, was released by the Financial Accounting Standards Board (FASB) on June 21. It clears up some of the more ambiguous facets of the new revenue recognition model that will go into effect for most nonprofits at [...]
Organizations across many industries are changing their processes to prepare for the Financial Accounting Standard Board’s (FASB’s) new revenue recognition standard. Amidst all of the discussion and information about the revenue recognition changes are questions such as, “Do the changes impact not-for-profit entities? If so, when and how?” The first part of the answer is [...]
The new principles-based revenue recognition model introduced in Accounting Standards Codification 606 (ASC 606) is already in effect for much of the business world. Publicly traded companies were required to implement the new accounting standard for reporting periods that began on or after December 15 of 2017, but nonprofits were given an additional year to [...]
The way a company earns revenue is foundational to its financial success. Therefore, the new accounting guidance for recognizing revenue from contracts with customers is expected to affect all areas of operations and bring sweeping changes to enterprise-wide systems and processes. As the effective date for the new revenue recognition standard draws near, companies should [...]
Additional Articles in the Series Step 1, Identifying Contracts Step 3, Determining Transaction Price Step 4, Allocating the Transaction Price Step 5, Recognizing Revenue Step 2 of Revenue Recognition: Identify Performance Obligations Identify Customer Contracts Identify Performance Obligations Determine Transaction Price Allocate Transaction Price Recognize Contract Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Identify Customer Contracts Identify [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 5, Determining Transaction Price Step 4 of Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 1, Identifying Contracts Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Solving the Revenue Recognition Maze: Step 5, Recognizing Revenue Step 3 of Revenue [...]
Additional Articles in the Series Solving the Revenue Recognition Maze: Step 2, Identifying Performance Obligations Solving the Revenue Recognition Maze: Step 3, Determining Transaction Price Solving the Revenue Recognition Maze: Step 4, Allocating the Transaction Price Solving the Revenue Recognition Maze: Step 5, Recognizing Revenue Step 1 of [...]
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 [...]
After more than a decade of work, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued new joint guidance impacting revenue recognition, and almost every company will be impacted in some way—although some industries will likely feel the changes more than others. FASB’s version, Revenue from Contracts with Customers, standardizes [...]
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, [...]
