Revenue Recognition

The model for revenue recognition is changing with the Financial Accounting Standards Board’s (FASB) May 28, 2014, release of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU eliminates most of the existing industry-specific guidance and significantly expands revenue recognition disclosures. More than 600 pieces of current revenue recognition guidance are replaced with an overriding principle and a five-step model. The standard requires entities to make more estimates and use more judgment than under current guidance.

The table below illustrates the new effective dates for entities with December 31 year-ends.

FASB Three-Part Video Series

John Mather

National Industry Partner
Manufacturing & Distribution

Tondeé Lutterman

National Industry Partner
Not-for-Profit & Government

Eddie Marmouget

National Industry Partner
Health Care

Tim Wilson

National Industry Partner
Construction & Real Estate
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