Research firm Audit Analytics is predicting that more than a few companies will struggle with the new revenue recognition rule changes. “We have been asked several times whether or not the adoption of the new revenue recognition standard will cause an increase in the number of restatements and control failures. While it may be early to say, our review of SEC filings provides a strong indication that we will see an uptick in revenue recognition accounting failures,” wrote Olga Usvyatsky, vice president of research at Audit Analytics in a report issued this week. “As we were working on the Q3 update, we identified a number of companies for which the controls were found to be ineffective and a material weakness was directly attributed to the lack of progress in the ASC 606 implementation,” she wrote. Examples of companies that are struggling include ICTV Brands and Axalta Coating Systems.