PricewaterhouseCoopers has released a new paper on how companies can get ready for the newly converged revenue recognition accounting standard.

The Financial Accounting Standards Board and the International Accounting Standards Board released their long-awaited converged standard on rev rec in May, with the expectation that major firms such as PwC would be updating their guidance for clients to reflect the new standard (see FASB and IASB Issue Revenue Recognition Standard).

PwC’s paper, “The new digital ecosystem reality: The new revenue recognition standard—Is your technology company ready?” delves into how public companies will be affected by the new, converged accounting standard when it begins to take effect in 2017 (private companies won’t be affected until 2018). Companies in the technology sector are expected to see a major impact, and the document is mainly addressed to them. However, a number of other sectors such as real estate, telecommunications, media and automotive, are also likely to see a big impact.

PwC noted that the new standard represents the biggest accounting change in over a decade, and it is important for businesses to start preparing now so they are able to capitalize off the top opportunities once the change is put into effect. 

“Technology companies that start preparing for the change now will be in the best position to seize the opportunities that will come with the change—while also surmounting the challenges,” said the firm.