June 6, 2019 By: Claudia R. Wolter There are a lot of new disclosures required. Some are policy and can be written/determined at any time during 2019. Others are more pervasive and you may need to make system changes now in order to capture the information needed for your 2019 financial statements. GAAP now requires a footnote disaggregating revenues. What does that mean? Revenues must be disaggregated according to the timing and qualitative information about how economic factors will affect the nature, amount, timing, and uncertainty of revenue and cash flows. In addition to disclosing the timing, you must chose the other disaggregation categories that make sense to your organization. Some common categories include: Geographical regions Service lines Segments Departments Customer type Contract type Some of the items you need to consider for implementation are: Which of these (or other) categories of disaggregation make sense for your business? Who is responsible for determining the categories on which you are reporting? Do you need to make updates to your system in order to track the categories of disaggregation? Do you need to make updates to your system in order to track the timing (point in time versus over time)? Who will update the accounting system to capture the information and when? If not updated as of 1/1/2019, will you be able to get the relevant information needed prior to the systems update? If not, who is and how are you getting the information prior to the systems update? Entities should ensure that they have systems, internal controls, and procedures in place to accumulate the information required to satisfy these new presentation and disclosure requirements. KatzAbosch has individuals experienced in contractor issues and trained in process improvement using lean six sigma principles that can help you through this transition. If you have any questions about this information please contact your KatzAbosch representative; or contact us by clicking here. Article by: Claudia R. Wolter Claudia Wolter, a Shareholder with KatzAbosch, joined the firm in 1988. She has played a major role in leading the firm into the 21st century with cutting edge initiatives, including the transition to and managing of a paperless environment. She serves as Co-Chair of the firm’s Accounting and Auditing Services Group, assists in the quality control management and oversight of the firm, and is a member of the Construction and Real Estate Services Group. Most recently, Claudia served as a contributing author of “Construction Accounting,” an in-depth guide to construction financial and accounting issues for attorneys distributed by the American Bar Association. A dedicated professional, Claudia holds the prestigious distinction of Certified Construction Industry Financial Professional (CCIFP), a certification held by less than 50 professionals in Maryland and less than 1000 professionals in the United States, the designation of Certified Construction Auditor (CCA) from the National Association of Construction Auditors (NACA) and a Lean Six Sigma CPA Green Belt certification from Ohio State University ATI and Boomer Consulting, Inc.
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