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Sep 15, 2016 10:30:00 AM

New Lease Standard Requires New Definitions & Judgment

The HORNE team has written quite a bit about the new revenue recognition and lease standards, but the new rules will impact the telecommunications industry more than other industries. In this blog, I’d like to provide information for telecom companies to assist them with managing their finances and operations, as well as developing the judgment necessary to identify what actually constitutes or contains a lease.

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Topics: Revenue Recognition Standard, Lease Standard, Telecommunications

Jul 7, 2016 11:00:00 AM

Are You Ready to Implement the New Accounting Standards?

When the HORNE Public & Middle Market team started writing about the new lease standard and the new revenue recognition standard, the implementation deadlines seemed to be in the distant future. The guidance for the lease standard was just released in February of this year and doesn’t take effect for public companies until 2019 and for private companies until 2020. The revenue recognition standard deadlines are scheduled a year earlier—2018 and 2019 for public and private companies, respectively.

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Topics: FASB, Revenue Recognition Standard, Lease Accounting

May 27, 2016 10:00:00 AM

Identifying Contractual Performance Obligations

My grandmother is 95 years old. She is still physically active, mentally aware, and seems to be one of the most social and popular residents in her retirement community.  Last Christmas, we decided to give her an iPad.  She already had a cell phone, a new TV, and subscriptions to her favorite magazines, so an iPad was a natural next step. 

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Topics: Revenue Recognition Standard, Contracts

May 19, 2016 11:00:00 AM

Revenue Recognition Standards Pose Telecom Challenge

I love my iPhone. I can’t do without it. So every two years, I search for the best contract, the best price, the best coverage, and I sign up for two more years. So do millions of others.

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Topics: FASB, Revenue Recognition Standard, Telecommunications

May 12, 2016 10:00:00 AM

CFOs Collaborate in the Big Easy

New Orleans provided a great venue for this year’s AICPA CFO Conference. CFOs from around the country arrived to expand their knowledge on topics from risk management to being an effective leader.  As someone in the accounting profession and not in that CFO, here are a few of my takeaways from the conference. 

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Topics: Revenue Recognition Standard, Cybersecurity

Apr 21, 2016 10:00:00 AM

4 Steps to Prepare for the New Lease Standard

I recently wrote about the major financial reporting changes in the new lease standard and the potential impacts the changes could have on your business. When I wrote the blog, the Financial Accounting Standards Board was finalizing the standard, and it officially issued the new lease guidance on Feb. 25.

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Topics: FASB, Revenue Recognition Standard, Lease Standard

Apr 14, 2016 1:30:00 PM

New Standards Simplify Share-Based Payments Accounting

Hidden underneath the significant changes to revenue recognition and leases is the FASB’s update to accounting for share-based payments. And those changes – in an area often perceived to be as complicated as an NFL playbook – just made our jobs a little easier.

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Topics: Revenue Recognition Standard, Lease Standard

Mar 17, 2016 1:00:00 PM

3 Tips to Make Your Internal Audit Easier

Experienced internal audit team members are hard to find and even harder to keep. The demand for IA is growing due to changes in today's business environment, which requires the specific expertise that seasoned IA team members have.

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Topics: Revenue Recognition Standard, Internal Audit, Outsourcing

Jan 28, 2016 10:00:00 AM

Take Steps Towards New Revenue Recognition Standards Now

Imagine this – you are a company with hundreds of thousands of customers. As part of doing business, you also have multi-year contracts with each of your customers.

Now imagine planning for the new revenue recognition standards. I know … it’s daunting. 

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Topics: Tax Planning, Enterprise Complexity, Revenue Recognition Standard

Aug 27, 2015 11:00:00 AM

Revenue Recognition Standards May Affect Even Simply-Structured Businesses

When I began my initial review of the new revenue recognition literature, I expected that some industries like technology, construction, telecommunications and software would see significant consequences to their financial reporting because of changes to the standards. I kept telling myself, though, that some businesses wouldn’t be impacted very much at all. I thought the consumer products industry, for example, could expect only a few changes to its current operating practices and financial reporting. 

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Topics: Revenue Recognition Standard

Jun 25, 2015 10:24:00 AM

Revenue Recognition: Why is This So Difficult?

According to a recent article in Fortune magazine, the SEC questioned 88 percent of companies in the technology, media and telecommunications industries that went public in 2014 regarding their revenue recognition policies.   That’s up from 79 percent the year before in the same industries, and substantially more than companies outside of these industries. Overall, approximately 46 percent of all companies had to provide clarification to the SEC about their revenue recognition policies.

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Topics: Enterprise Complexity, Revenue Recognition Standard

May 28, 2015 10:00:00 AM

Preparing for the Revenue Recognition Standard

The Financial Accounting Standards Board gave us some good news and some bad news in a recent update. The good news is the Board has delayed the effective date for the proposed accounting standards update until periods beginning after December 15, 2017, giving everyone an extra year to prepare. The bad news is that the Board has given everyone an extra year to prepare. With this type of update, it is easy to put off making changes in your company until it’s too late. Don’t delay!

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Topics: Accounting, Revenue Recognition Standard