Revenue Recognition for Technology Companies
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), which added Topic 606 to the FASB’s Accounting Standards Codification (ASC) and will replace almost all pre-existing revenue recognition guidance in legacy generally accepted accounting principles (GAAP) with a robust framework for addressing how an entity should account for its revenue. Implementation by calendar year-end public entities must occur no later than January 1, 2018 and by other calendar year-end entities no later than the year ending December 31, 2019.
All entities in the technology industry whose financial statements are prepared in accordance with U.S. GAAP will be affected by the new guidance. Learn more about the new revenue recognition guidance and how it will impact your technology company below.
Tech companies: New revenue recognition implementation can be challenging but there are opportunities to improve processes and systems
Watch to learn insights on implementing the new revenue recognition standard (ASC 606) for your technology company.
Compliance with the revenue recognition standard may be more challenging and require more effort than many companies realize.
A tax-specific perspective on the new financial accounting revenue recognition standards and the impact on the technology industry.
This resource center provides information about the FASB revenue recognition standard, guidance, implementation ideas and tax implications.