The Financial Accounting Standards Board’s (FASB) recently issued and lengthy revenue recognition standard is intended to promote greater comparability of financial information across companies, industries and geographic areas. For many organizations, the new rules could mean significant modifications in the timing and amount of revenue recognition.
This accounting change won’t stop with financial reporting though. Its sweeping impacts will ripple through any operational team, process or system that contributes to or relies on revenue. This means your sales, tax and IT departments, among others, could be affected.