During the fourth quarter of 2017, the Financial Accounting Standards Board (FASB) issued two standards for codifying the Securities and Exchange Commission’s (SEC’s) rescission of prior guidance on revenue recognition and eliminating outdated guidance on certain deferred taxes of steamship entities as well as one proposal that includes various improvements to the codification.
With public companies now operating under Accounting Standards Codification (ASC) 606, the new revenue recognition standard, their efforts to implement the standard hold lessons for private companies adopting the standard in 2018 and for companies preparing to implement other major standards including leases, credit losses, and hedging.
To better understand these lessons, FERF spoke with Glenn Richards, an audit services partner, and Bill Watts, a risk consulting services principal, of Crowe Horwath LLP about the standard and the steps public companies have taken to implement its requirements.