In the last article, we discussed what kind of accounting changes are happening relative to revenue recognition and introduced a new term: performance obligations. We also discussed how performance obligations are something new and for a number of industries will not be the same as existing sales order lines items or existing products or services.
As we discussed in the previous article on September 8th, the way in which revenue is recognized will change substantially by 1/2017. So, how is revenue recognition changing?
The way in which revenue is recognized will be significantly changing at the end of 2016. This impacts all industries, but will have significant impactful to telecom, technology, and professional services companies.
Before we get into the details of how revenue recognition will be changing in the near future, if you are a private company, you might ask why is this important to me. [Read more…] about Revenue Recognition Changes: Should You Be Concerned?