Because the revenue recognition update is so broad in scope, it may mean significant changes for companies’ current revenue and financial reporting processes, especially in the construction sector.
Current economic conditions for the energy sector may indicate that the carrying amount for a long-lived asset has become unrecoverable. In these circumstances, the asset becomes impaired.
The update is significant for the financial reporting and compliance requirements it presents to businesses across all sectors.
It’s more important than ever for employers to determine that their benefit plans adhere to Department of Labor and Internal Revenue Service regulations as these regulatory bodies have become better at identifying businesses that fail to comply with fiduciary responsibilities. That means more and more benefit plan administrators are being hit with fines that can total up to $1,100 a day.
The term “audit” gets used liberally when businesses need to provide financial statements to outside parties, but an audit may not actually be what many businesses need to meet their financial requirements.
The new Payment Card Industry Data Security Standards require businesses to update and improve security for payments.
Those who are involved in financial reporting for a public or quasi-public entity in the state of Louisiana must be aware of Act 462 of the 2015 Louisiana Legislative Session which further amends Louisiana Revised Statute 24:513.
In an effort to improve revenue recognition, the Financial Accounting Standards Board and International Accounting Standards Board recently released converged guidance for contracts with customers.