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Interesting discussion about the new revenue recognition rules, restatements, and clawbacks. As we have discussed, the new revenue recognition rules are much more principles based and generally lack the specifics that we have gotten used to. I don’t necessarily conclude, however, that the new rules will result in a greater number of restatements – instead, CFOs and audit committees should be communicating with their outside independent auditors so that they are on the same page as the new revenue recognition rules are being implemented, and as the new rules lack specifics there might also be greater flexibility in application.
Dave Tate, CPA, Esq. (San Francisco / California)