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Technical

Revenue Recognition Primer for Audit Committees Logo aicpa

  Free |   AICPA |   Jun 2014 |   AICPA.org

Because the revenue recognition standard will eliminate the transaction- and industry-specific revenue recognition guidance included in current GAAP and replace it with a principle-based approach, it is important for audit committees to gain an understanding of the standard and how it may impact the entity’s revenue recognition. This document will assist audit committees in ensuring the entity is prepared to adopt the standard.

Topics covered:
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Revenue recognition, Foundational
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Revenue recognition, Intermediate

3 Comments/Reflections

Tendai Nyakurimwa

Tendai Nyakurimwa May 2018

This article is very helpful to companies that are affected by the transition. Audit committees have to be alert to the changes and their effects to their organisations.

The article managed to address  the questions I had and provided me with answers to the same questions.
David Walsh

David Walsh Feb 2018

While an older article I am currently engaging with both external and internal auditors around our adoption of the new Revenue Recognition standard.  This article helped me prepare for the types of questions that may come up.
Tendai Nyakurimwa

Tendai Nyakurimwa Jun 2017

The article is a good guide to audit committees. It certainly helps audit committees to have specific areas they can look into. By doing this, they help the organization to focus on important areas. It also helps itself by preparing what to inform the board of directors.

It is very helpful to me as it widens my knowledge abd preparedness in this area.