The Financial Accounting Standards Board's (FASB) proposed Account Standards Update (ASU), Revenue Recognition (Topic 605), would generally have minimal impact on those companies in the manufacturing and distribution industries.
Generally speaking, revenue recognition related to a sale of goods would generally be recognized at the time the goods are transferrred to the customer, consistent with current U.S. GAAP. In certain instances, the proposal may drive changes in the timing of revenue recognition. For further detail, see the FASB Exposure Draft.
The FASB and IASB are currently targeting issuance of a final standard in the second quarter of 2011. Comments are due October 22, 2010.
About the Author
Jason Patch is a partner in Katz, Sapper & Miller’s Audit and Assurance Services Group and leads the firm’s Manufacturing and Distribution Services Group. Jason works with clients to ensure accurate financial reporting, keeping an eye on their bottom line, helping them avoid risk, and maximizing efficiencies. Connect with him on LinkedIn.
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