Over the next three years, many public companies will have to undergo significant changes in order to comply with the new FASB and IASB revenue recognition standards. The new standards, adopted in 2014 and slated for implementation in 2017/2018, will replace substantially all existing US GAAP and International IFRS literature on revenue recognition.

SAP customers met at the Revenue Recognition Summit at SAP Labs in Silicon Valley (Palo Alto, CA) in November 2014 to learn about the new accounting standards published by the Financial Accounting Standards Board and the International Accounting Standards Board.

Every company needs to track and report revenue and it rarely is an easy process.

But it really doesn't have to be unnecessarily complicated.

The newly released SAP Revenue Accounting and Reporting application now offers a simplied path forward that both meets the specific mandates in the new FASB and IASB accounting standards and provides enhanced management capabilities for generic or company-specific revenue recognition across various accounting principles.

SAP Revenue Accounting and Reporting was developed closely with customers and co-innovators like Bramasol, as well as SAP’s internal accounting department, by analyzing the standard and assessing how best to design an integrated solution to cover the new requirements.

When January 1, 2017 arrives, companies across all industries that follow US GAAP and IFRS rules will be required to comply with the new five-step model for revenue recognition.  On May 28, 2014, the FASB and the International Accounting Standards Board (IASB) issued converged guidance on recognizing revenue in contracts with customers.  The process calls for implementation during 2016 and “go live” reporting under the new standards in 2017.

Unlike the previous revenue accounting standard that was industry-specific and transaction-specific, the goal of the FASB and the IASB in the new standard is to introduce uniformity and predictability to revenue recognition practices. Among the industries that are likely to experience significant changes are aerospace, asset management, construction, real estate, software and telecommunications. Changes won’t be limited to these industries, therefore all companies need to develop an implementation plan. 

The Supply Chain Takes Center Stage

Every few years, a game-changing event materializes that generates a significant impact on the internal audit profession. Take, for example, the U.S. Sarbanes-Oxley Act of 2002 and similar legislation around the world enacted more than a decade ago. Usually, we immediately recognize the importance of such an event, the risks it creates for our organization, and how it will impact our internal audit functions.​

Light – a 4 million-consumers Distribution utility in Rio de Janeiro, Brazil, faced a non-technical losses indices increase in the last decade. There was a need for paradigm shifting - a solution whose efficacy should  not be restricted to a subset of consumers in the concession area of Light. With this objective, Light hired Choice Technologies for the implementation of Revenue Intelligence to change the scenario faced in recent years.To read more...

With its attractive, easy-to-use interface; social collaboration features; real-time analytics for ‘in-the-moment’ intelligence and mobile access, SAP Cloud for Sales from Bramasol, Inc has transformed our lives. We now work smarter and sell better.

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