Posted by Robert Half Management Resources on Thursday, July 16, 2015 - 12:33 | Follow me
On July 9, the Financial Accounting Standards Board (FASB) approved a one-year deferral of the effective date of the new revenue recognition standard it has developed in collaboration with the International Accounting Standards Board (IASB). This move had been expected.
Public companies will now be required to apply the new revenue recognition standard to annual reporting periods beginning after December 15, 2017. Nonpublic companies will need to apply the new standard to annual reporting periods beginning after December 15, 2018.
The new revenue recognition standard is intended to help simplify, and to increase transparency in, the disclosure of financial information. However, its adoption is expected to create significant additional work for companies — and not just for their accounting and finance teams.
The one-year deferral of the effective date should come as a welcome reprieve for many organizations that are behind schedule with their preparations for making the transition. But that doesn’t mean they can slow down their efforts.
Wrote Protiviti managing directors Steve Hobbs and Chris Wright in The Protiviti View, “The only delay is in the effective date of the standard; there should be no delay in management’s efforts to position the organization in a prudent state of readiness.”
In their blog post, Hobbs and Wright discuss additional details on the one-year deferral of the effective date for FASB’s new revenue recognition standard — and what it means for companies.
Also, be sure to catch Protiviti’s final installment of its five-part webinar series designed to help organizations transition to the new standard. The 90-minute webinar, “The New Revenue Recognition Rules: Industry and Cross-Functional Implications,” is scheduled for Thursday, July 23, at 12 p.m. EDT. Specific topics will include:
- Assessing the impact and planning the transition
- Industry and product specific challenges
- Changes to internal controls and business policies
- Adjusting business and IT models
You can register for the webinar here. (Qualifying participants will be eligible for CPE credit; see registration site for details.)
Previous webinars are available for viewing on the Protiviti website.