For now, the revenue-recognition rule is still a work in progress, notes SAP's Graham, so it's difficult to say what ERP adjustments will eventually be needed. In any case, SAP has handled rule-change tweaks before, he points out, including adjustments related to Europe's new payroll-tax rules and electronic-payment mandates, as well as switching European companies from local GAAPs to IFRS in 2005.
FASB spokesperson Christine Klimek says the board is keenly aware that the proposed revenue model contained in Topic 605 is a departure from the existing standards, and therefore would require process and systems changes for many companies. "That's why we encourage our constituents to take advantage of the public comment period and participate in our due process by providing feedback," says Klimek.
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