Bridge over ocean
1 April 2016 Position Paper

Watching the “Top Line”

Areas for Investor Scrutiny on Revenue Recognition Changes

  1. Vincent Papa, PhD, CPA, CFA

Reported revenue heavily influences investors’ overall view of reporting companies’ prospects. The IASB and FASB have both issued new and largely converged revenue recognition standards that will take effect by 2018. In this paper, we highlight aspects of the new guidance that are worthy of investor attention as well as discuss the implications of these aspects on the amount, timing, uncertainty, and presentation of reported revenue. We also emphasize the importance of investors being aware of reporting outcomes that could arise from transition requirements and the need for them to monitor revenue trends before and after the standard takes effect.

Watching the “Top Line”: Areas for Investor Scrutiny on Revenue Recognition Changes View the full article (PDF)

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