Category: Technical accounting

Revenue recognition: Are you in denial?

After more than a decade in the making, the FASB and the IASB finally issued new revenue recognition rules. Now if the boards needed that kind of a runway, how hard will it be for companies to implement? This is what manag…

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The new rev rec rules: Making estimates that minimize the likelihood of restatements

Get ready for scrutiny. One of the many challenges presented by the new revenue recognition rules is the need for companies to come up with an estimate of revenue for variable consideration instead of waiting until amounts…

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Does the FASB need to step back and simplify?

Having been involved in accounting for over 30 years, I have seen quite a few changes in accounting requirements, all enthusiastically introduced to “help the reader understand the financial status of a company better.…

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How the new revenue recognition standard may affect your company

We’ve been hearing about it for years. Finally, the result of the joint project between the FASB and the IASB to update and consolidate accounting standards for revenue recognition into one global standard is just about …

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How the new revenue recognition rules should help global businesses

One of the issues global companies have always faced is how to manage a global sales force in an environment where local accounting rules for revenue recognition vary. Countless times, sales teams have vented to me because…

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RoseRyan in action: smoothing steep growth with equity accounting

Here’s a situation that might sound familiar: your midsize tech startup is growing so fast that you’re scrambling to bring new people on board just to keep up with demand. Talent doesn’t come cheap, and you’ve lure…

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Hardware is dead in Silicon Valley. (Not)

A recent PBS documentary on the roots of Silicon Valley was really a story about Fairchild Semiconductor and the birth of the microchip industry. However, over the past 10 years, the Valley has continued to transform, bec…

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Year-end heads-up: don’t let equity issues take you by surprise at audit time

December 31 is fast approaching. Can audits be far behind? Every year as we help our clients maneuver through the audit process, it seems that one of the areas that can cause significant difficulties is equity. It’s not …

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Bucking tradition: is stock-based comp expense a worthy performance measure for Facebook?

U.S. accounting standards require companies to recognize expense based on the fair value of the stock-based compensation awards issued to employees; most commonly these are stock options and restricted stock units. Some kn…

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Stock compensation rules mask true operating performance

The other day a client asked which current accounting requirement is the worst from a U.S. GAAP standpoint. There are a few poor standards out there, but to me the answer is easy: FAS123R, now known as ASC 718, accounting …

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