Chris Roush, CPA, is a principal in Rea’s Millersburg office. Topics that Chris can talk about (even in his sleep) include, accounting standards, auditing standards, financial reporting, rural electric cooperatives and not-for-profit organizations. When he’s not in the office, you can find him following the Browns, Indians and Cavaliers.
five steps of revenue recognition
The Financial Accounting Standards Board has issued what’s being called “the most significant revision to the U.S. Generally Accepted Accounting Principles’ revenue recognition standards in history.”
Chris Roush, a principal in Rea’s Millersburg office, and Katie Snyder, a supervisor in our Wooster office, have confronted the changes head on to help business owners understand the new standard, while uncovering opportunities for new bottom line growth. So, on today’s episode of unsuitable on Rea Radio, Chris and Katie will explain what business owners need to know about this new standard, as well as the opportunities for potential revenue that it creates.
The Financial Accounting Standards Board’s new standard includes five steps of recognizing revenue from contracts with customers:
- Identify contracts with your customers.
- Identify the performance obligations in the contract (i.e. what is the customer going to get in exchange for what they pay?).
- Determine the transaction price.
- Allocate the prices to the performance obligations, if there are multiple performance obligations.
- Recognize revenue.
If you are a business owner or financial professional, listen to this episode to learn:
- What changes are in store for financial statement preparers.
- What GAAP financial statement preparers will need to enhance/expand footnote disclosures regarding revenue, even if there is no other impact.
- How the new standard can actually be viewed as an opportunity to look at other areas of potential revenue.
Katie Snyder, CPA, is a supervisor in Rea’s Wooster office. She prides herself on being a millennial who can bring simple solutions to complex issues while making accounting fun and interesting.
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Click here to read the official transcript for episode 196, “Revenue Recognition: Are You Doing It Wrong,” featuring Chris Roush and Katie Snyder.
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