Abstract:
The Financial Accounting Standards Board (FASB) issued the Post-Implementation Review (PIR) report for ASC 606 — Revenue From Contracts With Customers. The PIR process evaluates whether a standard is achieving its objectives by providing financial statement users with relevant information that justifies the cost of compliance. FASB staff collected real-world feedback from preparers, auditors, investors, and other stakeholders to assess how effectively the standard has been applied since its adoption. The report considers implementation experiences, costs and benefits of compliance, and areas that may require future clarification or research.
Why it Matters:
This insight matters because it reflects actual, broad-based experience with ASC 606 in practice, not just theoretical guidance. A PIR from the standards-setter itself signals where the standard worked well and where preparers, auditors, and investors are still encountering challenges — such as in disclosure requirements, judgments around variable consideration, and performance obligations. For CFOs, controllers, and auditors, understanding PIR findings helps prioritize compliance focus areas, anticipate future standard-setting activity, and reduce risk of misstatement or audit findings. It also demonstrates that revenue recognition continues to evolve as reporting environments and business models change.
