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Public companies must adopt the new revenue standards in 2018. Almost all entities will be affected to some extent by the new guidance, though the effect will vary depending on industry and current accounting practices. Although originally issued as a converged standard, the FASB and IASB have made slightly different amendments so the ultimate application of the guidance could differ under US GAAP and IFRS.
The Revenue Recognition Transition Resource Group (TRG) has discussed various implementation issues impacting companies across many industries. These discussions may provide helpful insight into application of the guidance. The SEC expects registrants to consider these discussions in applying the new guidance.
This publication reflects the implementation challenges identified over the past few years and highlights certain challenges specific to companies in the consumer markets industry.
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