With the release of its fourth-quarter 2016 results, Raytheon became apparently the first public company to disclose it had definitively adopted the new accounting standard on revenue recognition under U.S. GAAP.
Raytheon’s fourth-quarter earnings release dated Jan. 26 says the company adopted the new revenue recognition standard effective Jan. 1, 2017, a full year earlier than required, following the full retrospective transition method. That means the company’s results will reflect the new accounting not only in current periods but also in prior periods as if the rules had been in effect during all periods presented in financial statements.
