The Wall Street Journal had an interesting article this morning about a change in accounting rules on revenue recognition.<\/p>\n
Big yawn, right?<\/p>\n
What the article says is that the FASB,\u00a0the rule making body for accountants, is thinking about (emphasis thinking about) making\u00a0 a change to the way companies recognize revenue on long-term contracts, to bring it more into compliance with international norms.<\/p>\n
As I recall from my accounting classes, there are already a variety of ways you can recognize revenue, but this change in rules might change all of them, if the FASB issues it. I would guess that they’re in the comment phase now, so have your accountants get in touch with the FASB if it affects you.<\/p>\n
If we have any readers who are involved with public companies, the change will definitely affect you if it becomes official guidance. Ford, Verizon, Microsoft and several software companies have asked for a two year delay in issuing the guidance, because they’ve got to change electronic accounting systems.<\/p>\n
So, talk to your accountant about what’s going on.<\/p>\n
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The Wall Street Journal had an interesting article this morning about a change in accounting rules on revenue recognition. Big yawn, right? What the article says is that the FASB,\u00a0the rule making body for accountants, is thinking about (emphasis thinking … Continue reading