New revenue recognition standards are now in effect for private and public businesses as of January 1, 2019. If your business has not done so already, it is time to begin analyzing how these changes may affect your company.
The new guidance is aimed to provide consistency in recognizing revenue across a broad spectrum of industries and to provide more information to the financial statement users by way of improved financial statement disclosures.
Implementing the New Revenue Recognition Standards
The Center for Audit Quality (CAQ) issued Preparing for the New Revenue Recognition Standard: A Tool for Audit Committees. The tool is not only a valuable asset for Audit Committees of public companies, but should also be utilized by CFOs, controllers, business owners and management of private companies such as yours since you are tasked with the undertaking of analyzing, assessing and implementing the new standards as well.
The tool is divided into four, informative sections, with resources included in each section:
- Understanding the New Revenue Recognition Standard – What Is It?
- Evaluating the Company’s Impact Assessment – How Will Revenue Recognition Change?
- Evaluating the Implementation Project Plan – How Do We Need to Prepare?
- Other Implementation Considerations – What Else Do We Need to Consider?
Since the standards are already in effect for public and private businesses, there is no time to waste in obtaining an understanding of these new standards.
How Can DHJJ Help?
DHJJ’s Audit and Accounting team is available to help you with understanding and assessing the new standard, revising policies and procedures to comply (if necessary), and ultimately implementing the new standard. If you have questions, please call 630-420-1360.