May 5, 2016

Thomson Reuters Report Provides Guidance on the New Standards on Revenue Recognition from Contracts with Customers

NEW YORK – Thomson Reuters has released a special report providing guidance on the latest revenue recognition standards for revenues arising from contracts with customers. The report, An Overview of the Revised Accounting Model for Revenue Recognition, provides preparers and users of financial statements with an overview of the new model and its effects on companies.

In recent years, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have identified weaknesses and areas for improvement in accounting for revenue under both U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The FASB issued a new standard — Accounting Standards Update (ASU) 2014-09 (Topic 606) — in May 2014 to standardize revenue recognition accounting principles worldwide. The FASB subsequently issued clarifying standards providing further guidance on areas such as licenses or the principal versus agent analysis.

“As they work on implementing the new standard for revenue recognition, companies must develop an in-depth understanding of the model in order to navigate its complexities,” said Anne-Lise Vivier, accounting publications managing editor at Thomson Reuters. “This report provides helpful guidance so companies can assess the immediate impact of the new standards and determine the steps they must take to remain compliant.”

Topics addressed in the report include:

  • The key principles and the five-step approach for recognizing and measuring revenue.
  • Factors to consider when determining whether to capitalize or expense contract costs.
  • The presentation of contract liabilities, assets, or receivables in the financial statements.
  • How to provide disclosures about the revenue and cash flows arising from contracts with customers.
  • The effective dates and transition methods for ASU No. 2014-09 and related standards.

The free report is available at tax.thomsonreuters.com/Checkpoint-Catalyst-US-GAAP/revenue-recognition-accounting-model.

Thomson Reuters offers additional resources to help users stay informed on developments around revenue recognition:

Thomson Reuters Checkpoint integrates research, editorial insight, productivity tools, online learning and news updates along with intelligent links to related content and software. It is relied on by hundreds of thousands of tax and accounting professionals, 97 of the Top 100 U.S. law firms, 99 of the Fortune 100 companies, and all of the top 100 U.S. CPA firms.


Thomson Reuters
Thomson Reuters is the world’s leading source of news and information for professional markets. Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers. The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, visit www.thomsonreuters.com.

 

CONTACT

Dana Greenstein
Public Relations Manager
Tax & Accounting
Tel: +1 201 536 4397
Email: dana.greenstein@thomsonreuters.com