What is ASC 606 and what changes should you expect for your company?

It’s hard to keep up with nuanced accounting rules. If an audit is in your near future, here are some items of which to be aware.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This standard eliminates the transaction- and industry-specific revenue recognition guidance under the current GAAP and replaces it with a principle-based approach for determining revenue recognition. The FASB has subsequently issued multiple ASUs that modify or add to the original standard.

This year, the Financial Accounting Standards Board issued 10 updates to the Accounting Standards Codification. We explain three of the most significant updates that may affect your business.