The CPEA revenue recognition series – Fortune favors the prepared

Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, represents a significant change for many entities not only in their financial statements, but also in their business dealings with customers. The standard is not effective for nonpublic entities until annual reporting periods beginning after December 15, 2017, and it requires either a full retrospective transition or a “cumulative catch up” adjustment permitted through the modified retrospective transition method. While it may seem natural to defer consideration of the