Topic 606, Revenue From Contracts with Customers

In 2014, the FASB issued its landmark standard, Revenue from Contracts with Customers. It is generally converged with equivalent new IFRS guidance and sets out a single and comprehensive framework for revenue recognition. It takes effect in 2018 for public companies and in 2019 for all other companies, and addresses virtually all industries in U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. For many entities, the timing and pattern of revenue recognition will change. In some areas, the changes will be very significant and will require careful planning. BDO’s newsletter has been updated through December 2016 to reflect changes to the standard made by the subsequent ASUs and to incorporate certain consensuses reached by the TRG.

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