We were pleased to be joined by our friends from HA&W for today’s episode of “Ask the RevRec Experts,” in which we seek to simplify some of the confusion around adoption timelines for the new guidance.
Ramon Scheffer, Director of Financial Reporting Advisory Services, and Jagruti Solanki, Audit Manager of the Atlanta-based accounting firm, field questions from hosts Matt and Jim aimed to cut through the clutter surrounding this aspect of the new revenue recognition standard.
The upcoming guidance seems fairly clear-cut and, given the one-year delay announced last year, allows for most companies to know where they are and when they need to adopt. However, there are organizations out there still confused about adoption dates, especially when a fiscal year is not a standard calendar year.
This can add some complexity, and company representatives sometimes get confused between when they need to start gathering data under the new guidelines versus when they need to start reporting under them. This is a critical point Ramon and Jagruti help to clarify.
These accounting experts go on to discuss the ins-and-outs of the Full Retrospective and Modified Retrospective adoption methods and how those are going to impact the timelines for data gathering.