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EY Report: Revenue Recognition Standard Forces Changes at Retailers

January 28, 2019

In December, Ernst & Young and the Retail Industry Leaders Association (RILA) released their 2018 Retail Accounting Policy Survey (PDF). They polled finance executives from companies across the retail industry to determine how retailers are applying the revenue recognition standard and other accounting rules related to inventory in their financial reporting. The survey found that retailers have changed the timing at which e-commerce revenue is recognized as a result of the new rev rec standard and the growth in online shopping. In addition, a small number of retailers are allocating online sales to stores in their impairment analysis.