Do rev rec for contracts signed during fiscal years beginning prior to 6/15/10 have to be restated

Kurt Morrow's Profile
Kurt Morrow (Marketing Coordinator, Proformative)
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Kurt Morrow
Title: Marketing Coordinator
Company: Proformative
| Apr 18, 2011

This question was asked by an attendee of a recent Proformative Rev Rec webinar: Does revenue recognition for contracts signed during fiscal years beginning prior to 6/15/10 have to be restated?  Is the answer different if work on the contract has not started?

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Jim Brendel's Profile
Hein & Associates LLP
Jim Brendel (Partner, Hein & Associates LLP)
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Jim Brendel
Title: Partner
Company: Hein & Associates LLP
| Apr 20, 2011

Revenue recognition for contracts entered into for fiscal years prior to the adoption of EITF 08-1 would not be restated if the company elects the propective method of adoption. That answer would not change if the contract has not started, because the key date is when the company enters into the contract.

However, if the company elects the retrospective method of adoption, it would restate using the EITF 08-1 method for all years presented.

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