The Financial Accounting Standards Board (FASB) recently finalized a
new standard for revenue recognition that moves away from a
rules-based approach to a much broader principals-based approach.
Nonpublic companies are required to implement the new standard on
financial statements for periods beginning after December 15, 2018.
The new standard represents a major change in financial accounting.
Because almost all businesses start with book income to determine
taxable income, this shift will likely have a significant ripple effect on tax
return preparation as well. Despite the fact that the final effective date is
still a few years away, planning should be in process now for any entity
that issues GAAP financial statements. In order to have a successful
implementation, businesses should ensure that tax considerations are
included in each step of the process.
Changes to revenue recognition are coming sooner than you think. To ensure you're ready for the new revenue recognition standard, we've created resources to help you understand the timeline, impact, what's changing, and how we can help.