REVENUE RECOGNITION: ASC 606

In May 2014, the Financial Accounting Standards Board (FASB) released a new standard on revenue recognition that will supersede virtually all recognition guidance in current US GAAP. This standard, known in the accounting industry as ASC 606, is now effective for all nonpublic entities for periods that have started after December 15, 2018, and it will eliminate the rules-based revenue recognition model that contained very specific rules for different industries and move towards a more transparent, principles-based model to which businesses in all industry groups will need to adhere.

Herbein + Company, Inc. is positioned to help our clients work through how this standard will impact their financial position and overall accounting environment but understand that we are limited by our governing independence rules.

5 STEPS FOR REVENUE RECOGNITION

NEW REVENUE RECOGNITION STANDARD

Christopher Kunkle of Herbein + Company, Inc. reviews the 5 step process of Revenue Recognition ASC 606.

TRANSITIONING TO THE NEW REVENUE RECOGNITION STANDARDS

Christopher Kunkle of Herbein + Company, Inc. reviews the 2 transition methods for Revenue Recognition ASC 606 (full and modified retrospective methods).