UPDATE: Wunderlich Comments on Possible Revenue Recognition Changes

In an industry update report released earlier today, Wunderlich Securities commented on a proposal by an accounting regulator to change the process of revenue recognition. Wunderlich went on to say in the report “Companies are now waiting to see how the proposal for revenue recognition will change and if regulators will continue to move ahead. Most of the concerns are that revenue recognition timing could result in less revenue being recorded up front compared with today. There continues to be resistance to many concepts/components within the proposal document as well as provisions that may require ‘retrospective' application. Based upon a review of recent comment letters, we believe that some of the larger companies are beginning to focus on the potential for eventual changes. We believe most investors are not even aware of the potential for change.” The next step in the process will be a public roundtable which is planned to take place in the second quarter of this year.