Talk about putting on the blinders. More than half of CFOs are unaware of the forthcoming revenue recognition standards due out this summer from the Financial Accounting Standards Board and the International Accounting Standards Board, according to a new survey by Grant Thornton.
Even though revenue recognition is a priority convergence project that the two boards have been working on and discussing endlessly for the past five years, the survey found that 54 percent of the CFOs polled were unaware of the long-awaited revenue recognition standards, according to the survey. The awareness dropped even further with the size of the company. For companies with less than $100 million in annual revenue, only 38 percent of the CFOs surveyed were aware of the changes in the works.
However, awareness rose to 72 percent for companies with annual revenue greater than $5 billion.
Apparently, some CFOs have trouble recognizing the changing rules about revenue unless it’s at least a billion dollars.