Video Series: Revenue Recognition for Manufacturers—Myth #4
After speaking with several manufacturers that are analyzing their operations against the new revenue recognition standard, we realized there are a few common misconceptions. To help navigate the new standard, we’ve dispelled the top four rev rec myths for manufacturers.
This video is part four of our four-part series dispelling the top revenue recognition myths for manufacturers.
Myth #4: Pre-production activities always count towards contract fulfillment.
The truth is… it depends. While these activities sometimes count towards contract fulfillment as part of revenue recognition, there are instances where they do not. Determining whether they count is a meticulous, but necessary process that should be tackled head on.
The devil is in the details. For example, are your internal controls up to snuff? Watch for a refresher on pre-production activities.
Myth #1: It doesn't apply to you.
If you haven't started your evaluation or transition to the new standard, then this video is for you.
Myth #2: It only impacts financial reporting.
Watch to learn more about downstream impacts that require more internal updating than just your accounting processes.
Myth #3: Implementation can wait.
Don’t wait to start, as this process can take much longer than you think. Watch to learn how you can build in time for implementation—and avoid non-compliance repercussions.
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