Companies Warned About Workload of Implementing Revenue Standard
As the 2018 effective date for the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard approaches, companies in the latter stages of the implementation process caution that the undertaking is extensive and complicated. Those insights were shared by company representatives at the recent Financial Executives International’s Current Financial Reporting Issues conference in New York. Christine DiFabio of Zoetis, Inc. said Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606), is all encompassing. She also noted that implementation takes a significant effort that could require assistance from all parts of an organization.
Newly appointed Securities and Exchange Commission Chief Accountant Wesley Bricker made similar remarks, saying both late starters and well-prepared companies will have to address issues such as the complex disclosure requirements under Topic 606. Bricker also noted that companies will be responsible for managing implementation of the revenue standard, and staying within the confines of the Sabarnes-Oxley Act regarding auditors’ non-audit services.
If your company needs assistance with implementing ASU No. 2014-09, Cherry Bekaert’s experienced professionals are ready to guide you forward.