Implementing New Standards for Revenue Recognition, Leases, and Financial Statements

Norman Strauss, Marc Siegel, Mark LaMonte, Scott Taub, Prabhakar Kalavacherla, and Amie Thuener

The panel began with a discussion of the new standard for revenue recognition and the process for implementing it. Siegel highlighted some of the more prominent changes, such as moving the recognition of collectability to the beginning of the contract process and re-terming deliverables as performance obligations. Kalavacherla gave an auditor's perspective on how boards of directors are reacting to the new requirements, saying that the five-step framework provided by FASB has provided a good benchmark. “If you follow through, the revenue recognition will meet the principles of the standard,” he said.