Revenue Rule Could Pose Challenges to Bonus, Compensation Plans

The 2018 revenue recognition standard could affect companies’ compensation or bonus plans because measurement methods used under the old rules will change, a senior Deloitte & Touche LLP executive told a conference May 8.

“A lot of companies have some type of bonus arrangement, compensation plan, or some type of compensation for their employees and executives and invariably all those types of plans have some sort of link to revenue,” Deloitte senior consultation partner of revenue recognition Eric Knachel said at a Deloitte and Bloomberg BNA conference on revenue recognition. READ MORE