PwC and Financial Executives Research Foundation (FERF) report: The New Revenue Recognition Standard: Are you Prepared for Change?

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11/18/2014 by Assurance services
PwC and Financial Executives Research Foundation (FERF) report: The New Revenue Recognition Standard: Are you Prepared for Change?

At a glance

In this survey report, PwC and FERF teamed up to gain an understanding of where companies are relative to implementing new revenue recognition standard. While many companies do not know what the implementation journey fully looks like yet in terms of implementation processes, costs, timing, contract reviews, IT and systems, operations, quantification and reporting, they understand they should start preparing now.

The new standard, issued in May 2014, replaces nearly all existing US GAAP and IFRS guidance and will require significant management judgment - in addition to changing the way many US companies recognize revenue in their financial statements. The survey found that while a majority of companies are familiar with the new revenue recognition standard issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), they are still struggling with assessing the full impact of the change, particularly related to its implications for their financial reporting, processes and systems.

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