With the goal of ensuring that companies are reporting accurate revenue numbers, it may not be surprising that Sarbanes-Oxley is causing public companies to carefully scrutinize their revenue recognition policies. But what is surprising is that SOX isn’t the primary cause of public companies’ revenue recognition related headaches, according to a recent survey.
Indeed, more than half of public companies have modified their revenue recognition policies to comply with the Act, according to a survey by RevenueRecognition.com and research firm International Data Corp. According to the survey of 400 public and private companies, 55 percent of public companies have changed revenue recognition policies as a result of Sarbanes-Oxley.
