Revenue recognition

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Revenue recognition: 5-step model

The FASB and IASB recently released a final converged standard on revenue recognition. Companies across all industries will use a new five-step model to recognize revenue from customer contracts.

The new standard, which replaces nearly all existing US GAAP and IFRS guidance, will require significant management judgment, in addition to changing the way many companies recognize revenue in their financial statements.

Business revenue is a significant benchmark that drives other critical metrics like net income, EBITDA and earnings per share. The changes will have pervasive impacts on people, policies, processes and systems, and there are a number of things to prepare for now.

That’s where we come in. We provide an integrated approach to help you understand the new standard and be better prepared for the change. We take into account your unique situation, and apply our significant knowledge of the new standard to help your business from end to end.

Revenue revolution
What audit committees need to know about the new revenue standard.

The 2014 global accounting and financial reporting guide
This first edition summarizes the new five-step revenue recognition model and provides examples to illustrate its application.

In Depth: Industry-specific supplements
Our industry-specific supplements highlight examples and insights on how companies are likely to be affected by the revenue recognition standard.

In Brief
Access to PwC’s webcast and slide presentation explaining the standard’s interpretation, as well as industry-specific supplemental material.