CPA firms are advising clients to begin to get ready for the newly released revenue recognition standards, even though they won’t be taking effect until 2017.
The Financial Accounting Standards Board and the International Accounting Standards Board released the long-awaited converged standard on Wednesday (see FASB and IASB Release Revenue Recognition Standard). The changes are expected to have a bigger impact in some industries than others. “It’s well known that there are certain industries where there are going to be significant effects, like the telecommunications, software, real estate, construction and asset management businesses,” said Deloitte partner Joel Osnoss. “But accountants should not assume that if their companies or clients aren’t in those businesses, there’s no effect. It might just be some practice they’ve been living under for a while that made sense many years ago. But when you look at it in the context of performance obligations, there might be a bit of a surprise.”
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