Christopher Iannuzzi

Director, Construction
(248) 641-0005
Companies have the option to adopt Accounting Standards Codification (ASC) Topic 606 using one of two methods: the full or modified retrospective approach.

Iannuzzi Manetta, along with other CICPAC firm members, has prepared this whitepaper on adopting ASC 606 using the modified retrospective approach.

To clarify what the modified retrospective method is:

  • An alternative to Topic 606’s full retrospective approach employed when adopting the new accounting principles.
  • A method where the impact of change in accounting principle is reported as a cumulative, catch‐up adjustment to beginning retained earnings in 2019; 2018 revenues and contract asset or liability balances are not restated.
  • An approach that differs from the full retrospective method in that prior year financial
    statements are not restated. Instead, disclosure is required of differences in each line of
    the financial statements causing revenue recognized in 2019 under Topic 606 to differ
    from revenue that would have been reported using former accounting guidance if
    comparative financial statements are presented.

Questions about this document or any tax or accounting matter can be addressed via email to Chris Iannuzzi, Director or 248.641.0005.

Download Revenue Recognition Modified Approach Whitepaper

  • Download our whitepaper "Using the Modified Retrospective Transition Method" to learn more about how the ASC 606 standard may affect your company.