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Raytheon adopts new revenue rule under GAAP on Jan. 1

Tammy Whitehouse | January 30, 2017

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.

By Jan. 1, 2018, all public companies are required to adopt the new five-step method for determining when and in what amounts they should recognize revenue in financial statements. The Financial Accounting Standards... To get the full story, subscribe now.