According to Bloomberg’s recent article, “Many Companies Completely Unready for Revenue Standard” public companies are slacking when it comes to implementing the new revenue recognition standard. Companies have until December 2018, however, companies should start their implementation early. Could take companies up to nine months to understand the weight and significance of the new regulations on their organization. Companies will be required to assess all of their contracts individually to determine the impact. Then companies will need additional time in order to determine a plan of action and processes in place.
The article features Eric Knachel, Partner, at Deloitte & Touche and his perspective. He expresses the importance of starting the revenue recognition assessment early. He stresses how crucial is it for a company to start early and be prepared for the transition. The new revenue recognition standard has a broad impact not just on accounting but on human resources, IT, and Legal departments. Because of this Knachel recommends that companies should start early in order to avoid a catastrophe.
To read the full article –http://www.bna.com/companies-completely-unready-n57982073284/
Topics: Revenue Recognition