Companies that generate revenue and apply US GAAP or IFRS are currently facing major change. In May 2014, the FASB and IASB released a final, converged, principles-based 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 US companies recognize revenue in their financial statements. The changes will have pervasive impacts on people, policies, processes and systems.
Start preparing now to figure out how the revenue recognition standard affects your financial picture, your investors, and the way you do business. PwC’s team of professionals can help you evaluate the changes under the new regulations, determine how significant they will be going forward, and lay out a path toward implementation.