Question

What notable accounting considerations are there for companies in the clothing/ apparel industry?

Answer 1

Notable accounting considerations for clothing/apparel industry:
There are two notable accounting consideration for clothing /apparel industries as given below:
1) Revenue Recognition Standard update issued by Financial Accounting Standard Board (FASB) in may, 2014.
As per the standard a company need to recognise the revenue when the title of goods or service transfers
to the another party with the amount that was agreed upon by both the parties under Armour,2014.
This standard was effective from december 15, 2016.
2) Another update issued by FASB in december. 2015 that seprate classification and accounting of extraordinary
events that a company faces. This amendment is taken for better disclosure of normal business of a company.