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Early adoption of revenue recognition accounting standards
According to the article on Management Finance No. 3426, 8 companies disclosed that accounting standards for revenue recognition were early applied (as of September 23), and 28 companies in the previous survey (as of July 10) At the same time, the number of early adopters is 36 (limited to companies that have made early note in the “Change in accounting policy” in the securities report or quarterly report). The eight companies that were found to be early applied in this survey were timed for early adoption of 7 companies from the beginning of the fiscal year ending March 2020 and 1 company from the beginning of the fiscal year ending February 2020. As for the impact, 4 out of 8 companies increased, 1 decreased, 2 had “Impact is minor” and 1 had “no impact”. In principle, the new accounting policy will be applied retroactively to all past periods in the first year of the application of revenue recognition accounting standards. However, according to the proviso to paragraph 84, a new accounting policy will be applied before the beginning of the first year of application. The cumulative effect of the first year of application of a new accounting policy can be adjusted to the retained earnings at the beginning of the first year of application, and a new accounting policy can be applied from the beginning balance. All of the eight companies mentioned above applied the transitional measures in the proviso to paragraph 84.