The Impact of the New Accounting Standard on Incentive Compensation

As a compensation professional, I am always interested in any changes (legal, regulatory, economic, societal, etc.) that may influence the way incentive programs are designed, implemented and maintained. Back in 2014, Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) introduced new rules for revenue recognition. The new revenue recognition rules will take effect soon and this new standard will have impacts beyond financial statement preparation. Read on to see what steps companies can be taking now to assess if the changes in revenue recognition will impact their incentive programs.