more-arw search

Q&A Forum

Offshore Accounting Service's EITF 08-1 Compliance (Webinar Attendee Question)

When your company outsources revenue recognition accounting work to professionals outside of US, how can you be sure that their processes truly and correctly reflect the revenue to be recognized?

This question was asked by an attendee during the Proformative webinar "Taming Revenue Recognition to Ensure Compliance" held on December 6, 2012.  Please join the discussion and add your insights below.

A video of the webinar can be viewed here: https://www.proformative.com/resources/webinar-video-taming-revenue-recognition-ensure-compliance-0

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

In any situation, you will first have to document your procedure for revenue recognition, and then test said procedure. In outsourcing, they may follow your procedure or have one of their own that you adopt by default. In the latter case you are still responsible for affirming that said procedure is representative of the transactions pursuant to the guidelines, and further you are responsible for affirmatively asserting (and therefore checking) that the guidelines are followed.

You can no more be sure that they are following the rules than your own internal staff; in either case you are the responsible party to verify that the rules have been followed.

1124 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.