There is a new Revenue Recognition standard that may effect how revenue is recorded. The change will need to be implemented for annual reporting periods beginning on or after December 15, 2018. The standard affects all entities—public, private, and not-for-profit — that record transactions using GAAP.
Why is that important when implementation is 2 years away? Management will need to start planning now for possible implementation issues and what transition approach will be used.
The tax and accounting effect of the new revenue recognition standard will vary from business to business. Although the effective date of the new standard is not immediate, there are tax-related issues, and changes to accounting systems, that should be addressed sooner than later.
For 5 Steps to Revenue Recognition under the new standard and practical examples of how the change may effect the way you record revenue, please see e-Tip link below or contact our professionals at 859-331-1717.