New income recognition Standards

IRS building sign

Your thinking why do I care?  I know you are don’t play.

“The revenue procedure provides new procedures for taxpayers changing their method of accounting for the recognition of income for federal income tax purposes to a method for recognizing revenues described in the new financial accounting standards issued by FASB and the International Accounting Standards Board. Companies will be able to change to an otherwise permissible method of accounting that uses the new rev rec standard to identify performance obligations, allocate transaction prices to performance obligations, and consider performance obligations satisfied, if the method change is made for the taxable year in which the taxpayer adopts the new standards.

The new revenue procedure doesn’t provide guidance, though, relating to some amendments in the new tax reform law. The Treasury Department and the IRS are preparing additional guidance to address those amendments.”

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