Businesses in the professional services and manufacturing sectors could see dramatic changes to their accounting policies if a new standard for recognizing revenue proceeds as proposed.
The proposed new standard, unveiled last month by the Financial Accounting Standards Board, would fundamentally revise the principles of revenue recognition for businesses with complex products that entail multiple performance obligations. Other businesses with more straightforward economic transactions (say, in the retail sector) would feel less of a bite.
Marshall
“It's going to depend on the company,” says Brian Marshall, a partner with auditing firm McGladrey & Pullen. “If you are a run-of-the-mill retailer, you’re ...