In 2014, the FASB issued its landmark standard, Revenue from Contracts with Customers (ASC 606) which sets out a single comprehensive framework for revenue recognition. Nonpublic entities are required to adopt this standard for years beginning after December 15, 2018 (2019 for calendar year-end entities).
For many entities, changes in the timing and pattern of revenue recognition may be significant. In most entities, implementation will require careful deliberation and comprehensive insight into the new rules. In many cases, new and/or modified processes will be needed to record revenue in the correct period.
Smith Leonard has the tools, experience and expertise to assist management and your company in adopting ASC 606. For more information, please reach out to one of our team to discuss how we can help you through this change.