Opportunities await
Understand how the revenue recognition standard impacts the most significant item on your financial statements: your revenue line.
At CLA, we’re committed to helping address what matters most to you:
- Identifying critical issues involved in meeting the new requirements
- Understanding how each functional area should adjust its processes
- Implementing new requirements
Experience our client-focused approach
Our team can help you implement this standard in a sensible way that organizes the changes into a series of phases customized to your specific needs. The phases include:
- Establishing the team and structure for the revenue recognition project
- Providing customized training
- Identifying areas of significant impact
- Taking inventory of revenue contracts
- Establishing ongoing processes and controls
Revenue recognition services
CLA’s experienced professionals can help you understand how the standard specifically relates to your business and contracts. We can help you:
- Transition to the transfer of control model and determine the appropriate timing for revenue recognition (over time or at a point in time)
- Evaluate the impact of customer incentives, rebates, and refunds on the amount and timing of revenue recognition
- Use prescribed methods for significant estimates and judgments at contract inception and going forward
- Select a transition approach (the modified retrospective or full retrospective approach) and understand the impact of the approach on accounting processes and disclosures
- Adapt to increased disclosure requirements, including disaggregated information about contracts and sources of revenue, performance obligations, contract assets and liabilities, and factors used to determine the transaction price
Ultimately, we can help you develop an implementation plan that fits your needs. We can also apply our knowledge, experience, and technical skills to make the transition to the new standard smooth, compliant, auditable, and part of a strong system of internal controls over financial reporting.