Revenue recognition under U.S. Generally Accepted Accounting Principles (GAAP) is a complex area where even seemingly simple transactions are subjected to some very complex recognition rules. Further complicating the process is the FASB’s recent project to improve financial reporting by clarifying the principles for recognizing revenue and creating a single joint revenue recognition standard for U.S. GAAP and IFRS that companies can apply consistently across various industries and capital markets.
With new rules set to go into effect in 2010 and even more in 2011, many private and public companies are still struggling to assess the true impact on revenue as well as come to terms with the scope of their implementation needs and the degree to which they may need to modify their current revenue accounting processes. Many worry that their financial and operational systems might be a roadblock to adopting new revenue recognition methods yet they are unclear as to how to take the first steps toward ensuring they have the systems in place in order to be able to handle the new rules.
MFA Expertise and Guidance
No doubt, the challenges associated with the recent and potential new standards can be daunting. At MFA, we are well versed in the new and impending changes to revenue recognition and have had extensive experience assisting companies in developing and implementing appropriate controls and processes to embrace these new standards. Our team of revenue recognition specialists can help you to make sense of the new rules and how best to apply them for your unique business situation. We will expertly guide you through the process, helping you to assess the impact on revenue and evaluate your adoption, disclosure and reporting alternatives to ensure your organization is in compliance with the new FASB rules and SEC guidelines.
MFA offers services to address compliance with the full range of revenue recognition standards, including:
- Assessment of the impact and potential impact of recent and impending changes in accounting standards on revenue recognition for your organization
- Assistance in the determination and documentation of revenue accounting policies, procedures and required internal controls
- Assessment of pricing strategies for multiple element arrangements including their potential effect on long-term revenue behavior
- Proactive advice during the negotiation of complex contracts
- Review of revenue arrangements to ensure compliance with revenue standards while also maintaining a proper business perspective