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Revenue Recognition Issue 9 – Special Focus: Manufacturing

Sales in a manufacturing environment can take a wide variety of directions that would result in significantly different revenue recognition timing on a company’s financial statements. If your operation makes a very simple product that is sold on a. Read More >>

Revenue Recognition Issue 8 – Special Focus: Construction

As the new standards are being rolled out, the construction industry needs to address these standards as well as the unique accounting issues that the construction contractor faces with preparing their annual financial statements. There are several unique items. Read More >>

Revenue Recognition Issue 7 – Recognize Revenue When/As Performance Obligations Are Satisfied

Now that you have identified the contract and the underlying performance obligations, gathered information to assess the transaction price, and allocated the transaction price to the individual performance obligations, in this final step you’ll need to determine when to. Read More >>

Revenue Recognition Issue 6 – Allocate Transaction Price to Performance Obligations

Now that the transaction price has been identified under the contract, an analysis should be performed to allocate the transaction price amongst the performance obligations under the contract. These allocations will not always be obvious and will require significant. Read More >>

Getting Ready for the New Revenue Recognition Standards

In one of the most significant changes to U.S. GAAP in years, the new revenue recognition standards go into effect for private companies for years beginning after December 15, 2018. For many, this will require significant effort to evaluate. Read More >>

Revenue Recognition Issue 5 – Determine the Transaction Price

In many contracts with customers, the transaction price is fairly obvious; however, oftentimes it is not and requires significant interpretation. For example: Are there variable pricing components under the contract (like rapid payment incentives, quantity purchase discounts, penalties for late. Read More >>

Revenue Recognition Issue 4 – Identify Separate Performance Obligations

Contract accounting is extremely complex. As you work to implement the new revenue recognition standards, you need to review and document your customer contracts to determine which provisions within the contract provide for separate performance obligations (or deliverables) to. Read More >>

Revenue Recognition Issue 3 – Identify the Contract

Contracts can take many forms. Some contracts are formal, some are written agreements, some are in the form of purchase orders, and some may be just oral understandings. At the time of revenue recognition, you would need to assess. Read More >>

Revenue Recognition Issue 2 – Basics of Revenue Recognition: The 5 Step Approach

The Five Step Approach The new revenue recognition standards require the use of a five-step approach in determining how to recognize revenue on your financial statements. The five steps established by the rules are as follows: 1. Identify the. Read More >>

Revenue Recognition Issue 1 – Introduction to Revenue Recognition: Why You Should Care

    What is it? On May 28, 2014, accounting rule makers (FASB and IASB) adopted new standards for recognizing revenue in your financial statements from customer contracts. Revenue is the single largest line item in most companies’ financial. Read More >>