It's critical for restaurants and restaurant franchisors to begin preparing for the new revenue recognition standard. For public business entities, adoption is required in 2018 and for all other organizations, in 2019.
Don't wait to start planning, since transitioning to the new five-step process is going to take significant time. The new standard uses a framework applied to all contracts with customers. With such variation in restaurant contracts, restauranteurs and franchisors will need to analyze each agreement individually or by portfolio of similar agreements.
Our revenue recognition resource guide for restaurants includes a list of the top topics on revenue recognition for the restaurant industry, including:
- Customer incentives, cash refunds, and credits
- Gift cards, consignment arrangements and loyalty programs
- Sales with right of return
- Impacts on taxes and balance sheet
Download our Revenue recognition resource guide for restaurants to help your business implement the new standard.