Michael Mathieson Featured in Compliance Week: Add Tax to the Growing List of Revenue Recognition Crises

 

Michael Mathieson Featured in Compliance Week: Add Tax to the Growing List of Revenue Recognition Crises

Michael Mathieson, CPA, senior advisor in Valuation Research Corporation’s (VRC) Chicago office, was quoted in Compliance Week on the latest considerations related to the new revenue recognition requirements.

Compliance Week notes, “Tax rules are not changing, but the new five-step method that public companies must begin to follow in 2018 changes the accounting method for recognizing revenue in financial statements. That means companies may be facing method changes for tax purposes as well, and that raises huge tax compliance and reporting implications.”

Mathieson said, “A lot of people forgot about [tax] until now,” and he sees companies still in “phase one” of the transition, which has been focused on the accounting change. Mathieson continued, “…in phase two you need to analyze what that means from a tax perspective. People scrambling now is indicative of the whole process companies have gone through.”

The article further discusses that the IRS has issued a request for comment on whether it should revise its procedures for granting permission to tax accounting methods. 

A copy of the article is available on Compliance Week’s website for subscribers.