The time has finally come for private companies to comply with the GAAP modifications of ASC 606 – Revenue Recognition.
The changes relate to how revenue from contracts with customers is earned, received, and when it should be recognized for GAAP. If changes are made under the new standards, a tax accounting method change may also be required.
As a reminder, revenue for tax purposes should be recognized no later than when it is earned, paid, due, or now when it is recognized for GAAP purposes.
For more information contact Julie Helms – Director of Specialty Tax Services or your Lurie trusted advisor.