Revenue recognition: Industry insights

In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), which provides a robust framework for addressing revenue recognition issues and replaces almost all pre-existing revenue recognition guidance in current U.S. generally accepted accounting principles (GAAP) upon its effective date. The new revenue recognition guidance supersedes the vast majority of industry-specific revenue recognition guidance currently in U.S. GAAP, including the guidance applicable to construction contracts, software arrangements, health care entities and real estate transactions, to name just a few.

While the effective dates for the new guidance are staggered, they are now upon us. With limited exceptions, the new guidance was effective as of January 1, 2018 for public entities with calendar year ends. For all nonpublic entities with calendar year ends, the new guidance is effective in the year ending December 31, 2019. Time is of the essence for these entities given that implementation of the new guidance could represent a significant undertaking in many cases.

To assist in this process, refer to our publication, A guide to revenue recognition, and the industry-specific webcasts and white papers referred to in the table that follows.

For more insights, visit our Revenue Recognition Resource Center.