Last year, we examined the eye-opening findings of a survey of technology CFOs, which indicated a majority of these people most responsible for the financial standing of their own companies were not themselves fully up to speed on the landscape-shifting new revenue recognition guidelines coming down the pike.
Yes, the annual report from BDO USA, this country’s arm of the global accounting network, found at this time last year 57 percent of the 100 tech CFOs surveyed were still unfamiliar with ASC 606, the oncoming new guidance.
This year’s survey is out and… well, well, well.
Of the 100 U.S. tech CFOs surveyed, 57 percent stated… wait for it… financial reporting as their most serious compliance concern this year.
It’s clear the new accounting rules on revenue recognition have more than a little to do with that fear. CFOs may still not understand everything involved in this transition, but the urgency is coming through loud and clear. This is quickly moving up on the priority list for many.
While familiarity has ticked up a bit in the past year, per survey findings, financial chiefs remain largely undecided about how to approach the change.
Almost half of the respondents (45 perent) haven’t made the decision whether to choose the prospective or full retrospective method of adoption. Of those who have decided, prospective is the more popular choice, with 21 percent preferring to apply the new revenue standard to transactions initiated after the implementation date instead of restating prior periods’ financial results.