Jeffrey London Comments on FASB’s New Revenue Recognition Standard
Kaye Scholer Executive Compensation & Employee Benefits Partner Jeff London was quoted in Compliance Week’s “When Revenue Recognition and Executive Pay Collide.” The article focuses on the new revenue recognition standard that the Financial Accounting Standard Board adopted last year—the article calls the standard a “tectonic shift in accounting”—and public companies’ expected implementation of policies to comply with it.
The standard, set to take affect at the beginning of 2017, changes the definition of “revenue,” which could have consequences for executive compensation packages. Jeff says few companies thus far have dived into an in-depth compensation analysis of how the standard will affect pay programs.
“There are things on the horizon that are much more urgent. The accounting standards rules have been somewhat falling to the wayside because nobody thinks it’s a crisis.”