As Companies Focus on Implementation Efforts for the New Revenue Recognition Standard (Topic 606), It is Important to Consider the Impact on Disclosures, Accounting Policies, Internal Controls and Process Documentation

On May 12, 2017, MBAF released an advisory addressing changes under the new revenue recognition standard (Topic 606) and the steps that organizations should consider as they develop implementation plans (MBAF’s Topic 606 Advisory). Today, as many companies are undergoing the implementation process to adopt the new revenue recognition standard, MBAF would like to take the opportunity to remind you that the SEC and the PCAOB will be looking closely to ensure that the enhanced disclosure requirements (including in the quarterly reporting leading to the adoption) and the impact on internal controls and related process documentation are appropriately addressed as part of the implementation. Changes required to accounting policies should also be addressed.