Change – Some people say that’s what our country wants, and the accounting standard setters have delivered!
The change is related to accounting for warranties. The good news is that the differences between accounting for warranties under current generally accepted accounting principles and the new revenue standard are minimal. Warranty accounting itself remains unchanged, but warranties will need to be accounted for as separate performance obligations under the new standard, if they provide the customer with additional services. (A performance obligation is defined as a promise to transfer a good or service.)
