Survey Reveals Slow Revenue Standard Implementation
Over 70 percent of 300 major public businesses in the U.S. have yet to upgrade their accounting systems in preparation for the Financial Accounting Standards Board’s revenue recognition standard. In a survey conducted by one of the Big Four firms, one-third of respondents said their company are facing implementation challenges and could fall behind schedule. Reasons companies reported for falling behind implementation efforts include insufficient funding or staff, problems interpreting the revenue standard’s technical requirements, and issues collecting data.
Public companies have six months to comply with Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers. Survey officials believe that companies putting off the implementation process are likely to miss out on potential business benefits.