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Planned Re-Exposure of Revised Revenue Recognition Standard

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
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  Article Summary  
Along with after-tax profits and EBITDA, revenue is among the most critical measures of a company’s health and growth potential. Therefore, when changes take place in rules governing accounting for revenue, it is a highly significant event.

This CFO Edge article looks at the planned re-exposure of a revised Revenue Recognition Exposure Draft (ED) and how it will give companies, auditors, preparers and analysts another opportunity to weigh in on this extremely important accounting area.

Reviewed are the areas in which the most important changes have been made to the original exposure draft, as well as a discussion of the business areas that will be impacted by the new revenue recognition policy.

The article concludes with seven areas that companies should look at to help them gauge their readiness and proactively prepare for the upcoming changes.

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