The FASB and IASB recently released a final, converged, principles-based standard on revenue recognition. Companies across all industries will use a new five-step model to recognise revenue from customer contracts.
The new standard, which replaces nearly all existing US GAAP and IFRS guidance, will require significant management judgement---in addition to changing the way many companies recognise revenue in their financial statements. The changes will have pervasive impacts on people, policies, processes and systems.
For more detailed information on how this change will affect your company, click here to go to PwC's new revenue recognition site.