ASC 606 Revenue Implementation
Ever-increasing accounting oversight and regulation have become a way of life, typified by the new converged accounting standard ASC 606, which seeks to merge FASB (ASC 606) and IASB (IFRS 15).
After its initial deferral, the new ASC 606 rules are here to stay and are effective for publicly-traded companies with reporting periods beginning after December 15, 2017 (January 1, 2018 for calendar year-end public companies). Privately-held companies have one additional year to comply.
ASC 606 introduces transformational changes to the revenue model that will undoubtedly cause challenges to many companies during the implementation period and beyond. Companies will have to consider:
- Performance obligations (distinct goods or services)
- Revenue recognition (pattern of delivery over time or point in time)
- Transaction price considerations (various forms of price and volume variability)
- Contract modifications (change in scope or price or both)
- Capitalization of costs to acquire customer contracts
- Intellectual property licensing (right to access or right to use)
- Principal versus agent considerations ( control passes to the customer)
Are you ready? Review our ASC 606 readiness assessment to find out.
ASC 606 READINESS ASSESSMENT
Are you ASC 606 ready? If not or you have questions, contact us.
Benefits to You
With our experience, EisnerAmper’s ASC 606 team can help you conserve one of your most precious resources: time. We can help you avoid costly, time-consuming errors by misapplying – and then correcting – the standard, as well as save you time by allowing you to grow your core business.