With 2019 around the corner, companies could face unnecessary disruptions if they underestimate the impact of the significant new Financial Accounting Standards Board (FASB) revenue recognition standard and aren’t ready to tackle implementation as the rules become effective. FASB Topic 606 is effective for nonpublic entities for annual reporting periods beginning after December 31, 2018.
So how does this relate to “It’s A Wonderful Life?” Well, what happens when a small business fails to comply with important regulations? In the classic movie, It’s a Wonderful Life, a local building and loan association is in danger of failing its bank audit because of a major—but innocent—mistake by one of its officers. Are you or your clients in the same kind of danger?