Poll: Companies Slow to Adapt to New Revenue Recognition Standard
impact their organization. There has been little actual implementation to date, and significant indecision exists regarding which of the two methods of adoption companies are likely to follow," said the PwC report.
So for example, 75 percent of respondents said their companies have not yet completed an assessment for how the new standard will impact them, of which 27 percent haven't even started doing one. Beyond looking at the overall impact, 78 percent of poll respondents said their companies haven't begun assessing the quantitative impact the new standard will have on the balance sheet.
In total, only 5 percent have completed assessments and have begun implementing changes in systems, processes and controls.
Why so few? The biggest reason by far, at 38 percent, is because companies "do not believe there will be a significant impact on our company's financials." Meanwhile, 27 percent say they want to wait for additional clarification and additional amendments to be finalized, as the FASB has released proposed tweaks since the standard was first approved. There was also a small number of respondents who were stymied by uncertainty over the effective date, as the FASB and IASB both decided to delay implementation by a year; these respondents, 8 percent, plan to begin the process now that a final date has been settled on.
The PwC report expressed worry at the pace, saying that "although the 2018 effective date may still seem a long way off, the earlier you identify the implications of the new
So for example, 75 percent of respondents said their companies have not yet completed an assessment for how the new standard will impact them, of which 27 percent haven't even started doing one. Beyond looking at the overall impact, 78 percent of poll respondents said their companies haven't begun assessing the quantitative impact the new standard will have on the balance sheet.
In total, only 5 percent have completed assessments and have begun implementing changes in systems, processes and controls.
Why so few? The biggest reason by far, at 38 percent, is because companies "do not believe there will be a significant impact on our company's financials." Meanwhile, 27 percent say they want to wait for additional clarification and additional amendments to be finalized, as the FASB has released proposed tweaks since the standard was first approved. There was also a small number of respondents who were stymied by uncertainty over the effective date, as the FASB and IASB both decided to delay implementation by a year; these respondents, 8 percent, plan to begin the process now that a final date has been settled on.
The PwC report expressed worry at the pace, saying that "although the 2018 effective date may still seem a long way off, the earlier you identify the implications of the new
guidance, the better positioned we believe you will be to plan and implement."