Closing Time, one last call for CPE hours, and were gathering up our jackets and moving to the exits. While we don’t have to go home (and the Marriott says we can’t stay here), we are all looking forward to not only getting back to our families and friends, but to also bringing back a number of the ideas and thoughts gained throughout the three-day conference back to our clients.
Day 3 of the conference brought up some great discussion on revenue recognition. While the intent of ASU 2014-09, Revenue from Contracts with Customers, was to eliminate disparities in the recognition of revenue, some of the questions regarding applying the concept-based standard have been cause for concern. So much concern, that the FASB staff is looking into further delaying the implementation date of the standard, particularly as public companies, whom are looking into applying the standard on a full retrospective basis, will need to begin collecting information in 2015. Fueling this discussion was the FASB’s Chairman Russell Golden in his address during Day 2 of the conference, “The boards need to stand ready to consider how to ensure that there won’t be unnecessary diversity.” Despite the discussion on a potential delay, companies cannot nor should they rest on the laurels and need to address the impact that the new revenue recognition standard will have on companies.
From the PCAOB front, Directors Claudius Modesti (Director, Enforcement & Investigations) and Helen Munter (Director, Registrations & Inspections), emphasized the importance of performing quality audits and the areas of focus from a PCAOB Inspection process. Key areas of focus will continue on professional skepticism, auditor independence, appropriate board oversight, and the impact of increased globalization.
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