Reference Point - Changes in Accounting Principles

In 2019 every business must change the way it reports revenue on its Financial Statements. It's called accounting standard code 606. Bi natter the company size or industry, they must make the change. Most companies don't know about the change but it's important they make the change. Why? Banks, investor and merger/acquisition companies ll require Financial Statements before they take action. If a company is not on the new standards, their financial statements will not be accurate which means they won't qualify for a loan, etc.

This program was aired on KMVT15 Community Media.