6 Things to Know About the New Revenue Recognition Standard

According to OMA Connections Partner, Clark Schaefer Hackett (CSH), few accounting standards updates will impact as many entities as ASU 2014-09, “Revenue from Contracts with Customers.”

CSH wrote: “The goal of the new standard is to eliminate issues of inconsistency with companies’ application of the previous methods of reporting contract activity and create one set of revenue recognition principles that can be applied across all industries. The new standard also aims to provide more useful financial statement disclosures, and consideration of individual performance obligations within contracts and how revenue with those obligations is recognized.”