Effective for 2022, private companies that issue financial statements prepared under U.S. GAAP are required to conform to a new lease accounting standard affecting their 2022 financial statements. Changes from the new lease accounting standard should be reflected in annual financial statements issued in 2023.
A company’s financial statements reflect the story it tells the general public, and truth and accuracy are key. A company’s CFO is responsible for accurately reporting all of the organization’s financial activities.
Before the adoption of ASC 606, there was no formal standard for the recognition of revenue across industries. Learn how this important standard has affected the construction industry.
Donors have the right to set restrictions on the donations they give to a nonprofit. Grant funders want to make sure their funds are spent on agreed-upon programs. Nonprofits have to ensure these funds are spent in a way that donors support.
ASC 606 became effective for public companies in 2018 and privately-held companies in 2019. Previously, the reporting standard varied according to industry. Now, under ASC 606, the standard is industry neutral, making it more transparent.