A new, comprehensive accounting standard is set to change the way many companies recognize revenue in their financial statements, and that could reverberate through myriad systems and processes in significant ways. Many companies do not yet realize the degree of change the new standard will usher in, nor how it could affect many industries in unexpected ways, according to PwC and Wharton.
After much deliberation, the FASB and IASB (the Boards) are set to release a final global revenue recognition standard in fourth quarter 2013 that will do away with the current industry-specific accounting and instead apply a single set of principles to all revenue transactions. The new principles were designed to help harmonize US GAAP with IFRS. Many companies do not yet realize just how extensive the changes driven by the new rules will be.
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