Don’t Put Off Addressing Revenue Recognition Changes.
In what has been described as one of the largest changes to accounting rules (GAAP) in over a generation, the Financial Accounting Standards Board (FASB) has issued a new standard that changes the current rules for recognizing revenue and replaces over 200 specialized and/or industry-specific revenue recognition requirements under U.S. GAAP. This change will significantly impact the systems, processes, and accounting practices for virtually all organizations.
The fact that the new revenue recognition standard completely replaces existing rules necessitates that all businesses understand the new standard and analyze its impact.
Get going with Wipfli’s Quick-Start Adoption Service today.
If you haven’t started the process of understanding and analyzing the standard, we recommend Wipfli’s Revenue Recognition Quick-Start Adoption Service. We work with clients to review their current revenue recognition practices, financial statements, and typical business processes, including two customer contracts, in order to identify potential gaps. Analyzing customer contracts (written, verbal, and ordinary business practices) is the key to how you will recognize revenue under the new standard.
The service is designed to provide you with a road map for aligning your business with the new regulations. It includes a high-level summary of potential gaps identified, a recommended implementation plan and timeline, and a meeting to review our initial observations and recommendations. You can also add customized training on how to apply the new five-step model.
You will come out of this process with a better understanding of the steps you need to take to apply the new revenue recognition model, and how Wipfli can help you implement the needed changes to contracts, accounting systems and financial reporting should you need it.