Under U.S. Generally Accepted Accounting Principles (GAAP), there are strict rules on when to recognize revenues and expenses. Here’s important information about end of period accounting “cutoffs” as companies start to adopt the new revenue recognition standard.
How closely does your company follow the cutoff rules? The end of the period serves as a “cutoff” for recognizing revenue and expenses. However, some companies may be tempted to play timing games to lower taxes or boost financial results. Read More