Revenue Recognition Management for Microsoft Dynamics AX
The new revenue recognition standards issued by FASB and the IASB represent the most significant accounting change for U.S. businesses since Sarbanes-Oxley. These standards eliminate the transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. The standards apply to all entities, except for certain items, including leases accounted for under FASB Accounting Standards Codification (ASC) 840, Leases; insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance; most financial instruments; and guarantees (other than product or service warranties).
While some organizations may be planning to delay dedicating resources and budget to implementing the new standard for as long as possible, doing so could result in higher costs and negative consequences for the business.