Too Hot to Handle: Implementing Two Significant Accounting Standards at the Same Time
Valbona Sulcaj, Geyi Li, Hubert D. Glover

Abstract
Companies will face the historic challenge of implementing two major changes in the United States’ Generally Accepted Accounting Principles (GAAP) in more than 50 years Revenue Recognition, and Accounting for Leases. Due to the delay of the Revenue Recognition’s effective period for publicly traded companies and as of this writing, the forthcoming approval and issuance of the new lease standard, companies will have to rally internal and external resources to address an unprecedented transformation of accounting policies, business practices, accounting systems, training, and overall processes to effectively implement these two standards. We have integrated discussions with interviewed professionals and the FASB/IASB Joint Transition Group for Revenue Recognition’s (TRG) guidelines on developing an implementation plan for revenue recognition. Specifically, all suggest a systematic planning and implementing approach for a new major standard such as revenue recognition. The essential elements of any plan are outlined with commentaries from the professionals we interviewed.


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