Wednesday, July 26, 2017

Implementing the New Revenue Standard Raises Challenges Beyond Accounting - CFO Journal. - WSJ

Implementing the New Revenue Standard Raises Challenges Beyond Accounting - CFO Journal. - WSJ



...To address issues with implications beyond the accounting function, Mr. Knachel suggested that organizations consider establishing a revenue project management office comprising representatives from accounting, finance, IT, legal, human resources, and sales and marketing. “Putting together this kind of coordinated effort after a new standard with broad implications is implemented can often help organizations effectively address operational issues,” he said.

Disclosure Requirements
The amended treatment of a variable consideration is one of the more significant changes in the new revenue standard, but some organizations may not be focused on this aspect yet. The change relates to disclosing the judgments and estimates used to determine the transaction price of a performance obligation within a contract.

No comments:

Post a Comment