Consumer Products Spotlight
Redefining revenue recognition
The new revenue standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supercedes most current revenue recognition guidance.
The new revenue recognition standard will require consumer products entities to reconsider many of their existing accounting policies and practices. For example, variable consideration that may be created by sales incentives such as volume discounts or customer rebates will need to be estimated and may be constrained.
Deloitte India's Consumer Products Spotlight discusses the framework of the new revenue model and highlights key accounting issues and potential challenges for consumer products entities.