For the retail and consumer product industry, it may feel like implementation of the new revenue recognition standard is still far down the road. But, it's closer than it seems, with adoption going into effect in 2018 for public business entities and 2019 for all other organizations.
The amount of work required to shift to the new framework is going to take significant time, and there's no one-size-fits-all approach; preparation will vary by retail and consumer product business. The new framework applies to all contracts with customers and, with so much variation among retail and consumer product industry contracts, each must be considered individually or by portfolio of similar contracts.
Several key topics impacting the retail and consumer products industry, such as:
- Customer incentives, cash refunds, and credits
- Gift cards, consignment arrangements, and loyalty programs
- Sales with right of return
- Tax and balance sheet impacts
For the retail and consumer products industry, the time is now to get ready for the changes to recognizing revenue. Download our Revenue recognition resource guide for retailers to help ease the transition.