Question

ness strategies and contract ing practices may require extra time. Some companies are finding that changes to their business strategy or customer contracting practices are required to avoid outcomes that are unintended or not reflective of the economic substance of the arrangement. In these cases, changes in pricing. fulfillment models or other contracting practices may require additional lead time. Opportunity to address current state gaps. Many companies are using this opportunity to design solu tions that not only meet the requirements of the ne w standard, but also address existing gaps in their accounting processes and systems. For example there may be an opportu nity to automate certain accounting processes that are performed manually today using a spreadsheet program. TrueNorth offers real solutions that are designed with you in mind. Whether you're looking for health care options for your employees or dynamic risk management coverages, our integrated solutions offer a multifaceted approach that addresses today's LIPE I HOHE AUTO I BUSINES truenorthcompanies.com In other words, time is of the essence. To avoid falling behind on the implementa tion of this new standard, companies should have a complete accounting assessment to determine the degree of impact. Now is the time for your organi- zation to start the process toward transitioning to the new revenue-recognition standard. Stephen Thompson is an advisory partner at KPMG in Denver OPI N Subscribe today! Call 303-630-1953 or 970-232-3143 VERUS Bank of Commerce 3700 S. College Ave. Unit 102 02 E. 29th St Loveland, CO 80538 Fort Collins, CO 80525 www.verusboc.com Portoo Finance and Insurance Directory 1 2016 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission

. Give at least 2 points that a working accountant will find useful (using complete sentences).

Answer 1

following are the sentences that a working accountant will find useful:

• The financial accounting standard board has adopted a new accounting standard for revenue recognition that replaces a complex web more than 100 existing sources of revenue-recognition guidance.(from page no. 2, 3rd column)
  • reason why it is useful to a working accountant - as the board has adopted new standard for revenue recognition, the accountant should know what changes are going to take place in the existing revenue recognition policy. so that he could start working on it to adjust with the proposed changes.
• The new revenue standard is effective from Jan, 1. 2018, for public companies with a Dec. 31 year end, or one year later for non public companies. (from page no. 2, 4th column)
  • reason why it is useful to a working accountant - the accountant will get to know the date of implementation of new standard.
• IT system changes may be time intensive. If changes to IT system are needed, it will take longer to complete the implementation. major ERP software companies such as Oracle and SAP, are working on their revenue automation solution to comply with the requirements of new standard.(from page no. 3, 3rd column)
  • reason why it is useful to a working accountant - as the ERP software companies adopting changes, the accountant must know what type of changes will come in the software and how it will affect it's method of accounting and day to day transaction entry in the software.