Revenue Recognition for the Manufacturing Industry
Companies have started gearing up to implement new revenue recognition standards, more formally known as Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers.
Public entities must apply the new revenue recognition rules for annual periods beginning after December 15, 2017, including interim periods therein. Therefore, a calendar year-end public entity would reflect the new standard in its first quarterly report for the period ending March 31, 2018, as well as for the entire year ending December 31, 2018. Nonpublic entities have an additional year to adopt.
For manufacturing firms, the new standards could result in significant changes. Our whitepaper, Revenue Recognition for the Manufacturing Industry, highlights the core principles of ASC 606 and how manufacturing businesses can comply.
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