Honors Theses
Advisor
Marsha Keune, Ph.D.
Department
Accounting
Publication Date
4-2017
Document Type
Honors Thesis
Abstract
The impending implementation of new FASB guidance regarding the practice of revenue recognition will presumably alter the periodic presentation of top-line business performance. In anticipation of these impacts, this study seeks to isolate contractual business relationships within the automotive supply chain industry in order to illuminate certain changes and make financial statement users aware that corresponding adjustments may have to be made to their perception of revenue results. By outlining the differences between new and historical U.S. GAAP, and applying the anticipated quantitative effects of such shifts within a propositional study, I seek to produce conclusions that investors and analysts can use to better interpret current and future revenue data. Using historical company figures as a basis, incremental influences are applied to disaggregated portions of contract revenue, and final revenue figures are reconstructed to reflect the implications of new accounting guidance. This study displays the potential relative movement of these periodic revenue results as businesses transition away from their established accounting practices and into a new recognition model.
Permission Statement
This item is protected by copyright law (Title 17, U.S. Code) and may only be used for noncommercial, educational, and scholarly purposes
Keywords
Undergraduate research
Disciplines
Accounting | Business
eCommons Citation
Wargo, Kevin M., "Accounting for Change: Assessing Top-line Implications of New Revenue Recognition Principles" (2017). Honors Theses. 121.
https://ecommons.udayton.edu/uhp_theses/121