Stakeholders can weigh in on whether the Financial Accounting Standards Board (FASB) should delay the changes to revenue recognition. The FASB recently released an exposure draft that, if approved, would move the effective date of Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) back by one year.
ASU 2014-09 Revenue from Contracts with Customers (Topic 606) makes significant changes to the way entities recognize revenue. It replaces current practice, which requires four criteria be met for revenue recognition, with a five-step approach. The wide-reaching changes promise to affect a number of operational functions, from internal controls to sales incentives and information systems.
Find out more about the change in this MHM Messenger.