Revenue is an important metric for many companies, and one that senior management, owners, investors and lenders closely monitor. The Financial Accounting Standards Board (FASB)'s Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) reflects a principles-based approach that replaces the current rules-based approach. Recognizing revenue in your financial statements, therefore, will require significantly more judgment on behalf of management.
Our professionals understand the transitions that are needed across your organization in order for your business to meet the new requirements, and we are committed to helping you navigate this complex issue. Through our association with CBIZ*, we have developed a proprietary method that will allow you to efficiently document the application of ASU 2014-09's five-step revenue recognition model to your contracts with customers. MHM will be applying this proprietary method during the audits of its clients' implementation of Topic 606. Additionally, our webinars and our Revenue Recognition Serial assist you in breaking down the specifics of the new guidance and its potential effects on your business.
The new revenue recognition standard has proven to be dynamic; it has been amended by several post-issuance updates, which further complicates your planning. As these developments emerge, our team is there to keep you up-to-date. Resources and other relevant information are available through this resource center, and of course, we welcome you to contact us for more information.