In 2014, the FASB issued their much anticipated and finalized standard, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606), replacing all existing revenue recognition guidance and applying to all entities who enter into contracts with customers unless those contracts are within the scope of other standards. 

Due to the complexities and far-reaching nature of ASC 606, the FASB extended the length of time to implement this new standard. Public companies were required to adopt in the first quarter of 2018, while private companies were required to adopt the standard for years beginning after December 15, 2018. Companies must act now to begin the process of reviewing their contracts and assessing the areas in which financial reporting and disclosures will be impacted.

New Revenue Recognition Standard - ASC 606

Even if the reporting for the entity is not deemed significant, the companies must still go through the process to review their contracts, assess any changes, and quantify the assessments. Since most entities are affected, the reporting impacts will vary by industry as well as the number and types of contracts. Revenue recognition impacts include, but are not limited to, the following industries and business operations:


Keiter can help you understand, evaluate, and prepare to implement the many aspects of revenue recognition criteria to your business.

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