Staff comments from the Securities and Exchange Commission on early reports under the new revenue recognition standard tended to sway companies to revise their reporting.
An analysis of SEC comment letters related to the adoption of Accounting Standards Codification Topic 606 on revenue recognition says 11 companies that adopted the standard ahead of the required effective date promised to revise their language in future filings. The Intelligize report says the research company identified only 32 companies that adopted the standard in 2017 before required to implement in 2018, suggesting roughly one-third made changes to their reporting based on SEC comments.
