It’s Time to Implement the New Revenue Recognition and Lease Standards
After years of analyzing and overhauling revenue recognition and lease standards, it’s time for companies to implement the new standards set by the Financial Accounting Standards Board (FASB). The new standards will effect anyone reporting on a generally accepted accounting principles (GAAP) basis. To make sure your business is ready for the changes, Anders is hosting a breakfast presentation on Tuesday, September 12th on Implementing the New Revenue Recognition and Lease Standards.
It’s necessary to start preparing now, as the revenue recognition standards will take effect for fiscal years beginning after December 15, 2018 for all nonpublic entities, and will need to be retrospectively applied for all years presented. The new lease standards will take affect after December 15, 2019 for all nonpublic entities, and will also be retrospectively applied to all years presented on a modified basis. The Anders Audit and Advisory Services Team will provide an overview on how the new standards will differ from current practice and how this affects the presentation of financial statements.
How it Affects the Real Estate and Construction Industries
The new revenue recognition standard will implement one revenue recognition policy for contracts with customers in all industries, as opposed to some specific guidance for different industries, such as for construction contracts. Revenue recognition will be based on terms and conditions of the contract. Our presentation will identify some of the specifics to look for in contracts.
For more information on how to measure and report financial statements using the new standards, and how to implement, join us at the Revenue Recognition and Lease Standards Breakfast.