SEC Offers Early Relief on Revenue Recognition Implementation
The Securities and Exchange Commission is extending some early relief on the adoption of the comprehensive new accounting standard on revenue recognition: companies electing full retrospective adoption will not be expected to restate five years worth of numbers under the new approach.
Shelley Luisi, a senior associate in the SEC’s Office of the Chief Accountant, said at a recent meeting the Financial Accounting Standards Advisory Council that the Division of Corporation Finance recently determined it will not hold retrospective adopters to a five-year presentation of restated revenue figures. “They will not object if the retrospective application only applies in selected financial data to the years that are included in the audited financial statements,” she said. “So any additional years included in selected financial data will not need to be retrospectively restated.” Disclosure, however will be paramount, she said, so investors understand the inconsistency. Read more on Compliance Week.