The day of reckoning has arrived for companies that chose to delay the adoption of revenue recognition rules for bundled product and service offerings—and with it, plenty of hazards to avoid.
The Financial Accounting Standards Board issued the rules, which allow companies to speed up the recognition of revenue for certain bundled offerings, in October 2009 and allowed companies to begin adopting them immediately if they chose. However, adoption is now required for those with fiscal years beginning on or after June 15, 2010, meaning all calendar-year companies must start using them in their 2011 reports.
