Prepare for the new revenue recognition standard and make this transition with confidence
CliftonLarsonAllen can help you understand how the new standard will impact the most significant item on your financial statements: your revenue line.
What's on your mind?
- Identifying critical issues required to meet the new requirements
- Understanding how each functional area should adjust its processes
- Implementing new requirements
A unique approach
Our team will help you implement this new 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 on-going processes and controls
Revenue recognition standard services
CLA’s experienced professionals will help you understand how the new 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 ongoing
- 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
CLA will help you develop an implementation plan that fits your needs. We will 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.
Effective Dates for the New Revenue Recognition Standard
Annual reporting periods beginning after December 15, 2017
Annual reporting periods beginning after December 15, 2018