The Revenue Recognition Standard for Private Companies

More than four years ago, in May 2014, the Financial Accounting Standards Board (FASB) released a new set of accounting standards that was poised to make waves for many years to come. The new standards detailed in Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, supersede almost all industry-specific guidance pertaining to revenue recognition. To comply with generally accepted accounting principles (GAAP) going forward, public and private entities in all industries must comply with ASC 606 when recording their revenues from customer contracts.

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