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ARTICLE · 30 JANUARY 2025

Revenue Recognition Reminders From The SEC Conference

Riveron
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In case you missed it: as part of Riveron's recap of the latest AICPA & CIMA Conference on Current SEC and PCAOB Developments...

United StatesAccounting and Audit
Patrick Garrett
Patrick Garrett

In case you missed it: as part of Riveron's recap of the latest AICPA & CIMA Conference on Current SEC and PCAOB Developments, my colleague Valerie Flanigan covered comments from an expert panel comprised of EITF members discussing common issues in revenue recognition.

As revenue recognition is always a focus area for auditors, here are the key reminders for financial reporting professionals:

  1. Incentive programs (rebates, coupons) - these programs, which are commonly driven by marketing or operations to drive sales, may result in a reduction of revenue rather than a marketing expense depending on how the program is structured. Accounting teams should be sure that any new incentive programs include the accounting teams in the design so that the anticipated financial statement impacts are not misrepresented to senior management.

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