16 BWD | Fall/Winter 2016-2017
The clock is ticking
How to prepare for the new
revenue recognition standard
In the coming years, companies that follow U.S. generally accepted accounting principles (GAAP)
will be required to adopt a new accounting standard related to the recognition of revenue.
(In business parlance, this is commonly referred to simply as “revenue recognition.”) This new
standard may significantly change these companies’ current revenue accounting processes.
Over these four pages, BWD will examine this issue. First, Magdalena Marriott, CPA, and Stephen
Chang, CPA, offer advice on how you can begin preparing now for the revenue recognition change.
Then, Carol Wright, CPA, and Liesl Morelli, CPA, take a closer look at the change’s tax implications.
Though the new revenue recognition standard will not become effective for public companies until
2018 (2019 for non-public companies), the time to begin preparing is now.