New Guide Focuses on Revenue Recognition

Thomson Reuters has released PPC’s Guide to Revenue Recognition, providing in-depth and practical guidance for accountants and their clients on the new requirements for how and when revenue is recorded. These changes will impact financial reporting for all entities and for some will significantly alter their accounting practices, prompting the need for early preparation.

The Financial Accounting Standards Board (FASB), which establishes generally accepted accounting principles (GAAP), has issued seven new Accounting Standard Updates in its suite of revenue recognition pronouncements. These new requirements will be effective for public companies for years beginning after December 15, 2017 and for nonpublic companies for years beginning after December 15, 2018.

“Successful accounting firms are very proactive in helping their clients prepare for the future,” said Salim Sunderji, managing director, Checkpoint, with the Tax & Accounting business of Thomson Reuters. “The new FASB revenue requirements promise significant reporting changes for some entities, so this is a prime opportunity for firms to meet a critical need by helping clients prepare for implementation.”

PPC’s Guide to Revenue Recognition explains the FASB’s new five-step approach that must be used to recognize and measure revenue, aided by numerous examples illustrating each of the steps. It also compares and contrasts the new rules with current accounting guidance to allow for deeper understanding. Additional elements include 200+ real world examples, multiple flowcharts to aid in analysis and decisions, and numerous disclosure examples. A PowerPoint slide deck template is also provided to assist in client or group presentations.

PPC’s Guide to Revenue Recognition is available online. For more information, click here. PPC’s complete line of Audit and Accounting guidance and Practice Aids is available on Thomson Reuters Checkpoint.

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