New disclosures, new judgments, new frameworks to make judgments all are coming soon as FASBs new revenue recognition standard hurtles into reality by 2017. Accounting departments looking to start implementation soonwhich is anyone planning retrospective reporting of financialshave some big, crucial decisions to make about IT systems, vendors, and business strategy overall. Our rundown of whats to come in the next six months is inside.
While it is true that the new revenue recognition rules are more judgment based, the article overstates the lack of structure. Clearly audit committee members need to learn these new standards soon. See also my prior discussion at http://tatetalk.com/2014/05/29/fasb-iasb-release-historic-revenue-recognition-standard/