SEC Feedback Regarding ASC 606 Adoption
Anyone who has played Monopoly knows that every player wants that “Get Out of Jail Free” card… In real life, though, there are no “Get Out of Jail Free” cards for those adopting ASC 606. However, there has been enough real-world feedback on ASC 606 to provide a potential safe passage past that dreaded “Go […]
Is Your Company Ready for the New Revenue Recognition Exam?
Have you hit the snooze button one too many times on your revenue recognition alarm? It’s every student’s (or accountant’s) nightmare: before you know it, the term has ended, and one of the most important tests of the year (ASC 606 and IFRS 15: Revenue from Contracts with Customers), is here. Your teacher will soon […]
ASC 606 Adoption and Initial Disclosure Requirements
Welcome again to our blog and continuation of the discussion of Disclosures related to the new FASB revenue guidance, ASC 606 – ‘Revenue from Contracts with Customers’. With the effective date of the new guidance upon us, we would expect to see public companies disclose more information about the impact of the guidance prior to […]
ASC 606 Adoption – Initial Disclosures
2018 is upon us, and public companies will be adopting Accounting Standards Codification, Topic 606 (aka ASC 606). While seemingly a surprise for many companies, the new revenue recognition rules have been a long time coming. The FASB and IASB issued their final standard on ‘revenue from contracts with customers’ on May 28, 2014, after […]
5 Reasons Why You Should Stop Using Excel in Revenue Recognition
Public and private companies alike are at varying stages in the adoption of the new revenue recognition standard, Revenue from Contracts with Customers. Many finance and accounting departments have experienced challenges in understanding and implementing the new rules as it applies to their business because the new ASC 606 guidance has proven to be more […]
SOFTRAX View: ASC 606 Perspectives From Our Revenue Recognition Experts
Organizations must keep pace with new recurring revenue models while complying with tremendous changes brought on by the new revenue recognition standard embodied in IFRS15 and ASC 606. Companies who want to be successful in overcoming revenue recognition challenges should be proactive and start implementing a plan for ASC 606 immediately. Public companies must adopt […]
Weathering The Storm: ASC 606 Solutions
To ensure consistent application of rev rec rules, companies need to be armed with a strong internal understanding of how ASC 606 applies to their particular business model. Where internal know-how comes up short, third-party consultants can provide additional expertise – and peace of mind – when assessing the impact of revenue recognition.
Implications of Applying New ASC 606 Rev Rec Rules
The new revenue recognition standard is being converted into a single model across all industries. The new global framework for revenue accounting has numerous challenges for companies including: Application and Controls. Application was described in the previous blog post.
Challenges of Applying New Revenue Recognition Rules
The application of ASC 606 is a major issue for businesses impacted by the new revenue recognition rules. Most companies seem to be generally familiar with the new revenue recognition standard; however, there are specific areas within the rules that are vague. Many are left wondering how the new revenue recognition rules will impact their […]
The Reinvigorated Regulatory Agency, The SEC Takes Action on Improper Revenue Recognition
The new revenue recognition rules are daunting and many companies wonder how they will be impacted by ASC 606. What really happens to companies if they don’t comply with the new revenue recognition rules? Who enforces these rules? The reinvigorated regulatory agency, the SEC takes action on improper revenue recognition accounting. Learn about the SEC’s […]
The Making of the Perfect Storm: Part 1 Impact New ASC 606 Regulations
Companies will be required to adopt a new universal framework for revenue recognition – one that will hold regardless of vertical, product, or service. Currently, we have two different standards US GAAP and IFRS 15. The US Financial Accounting Standards Board (FASB) and its international counterpart, the IASB, have spent a significant amount of time […]
Impact of New Revenue Recognition Accounting Standard
For many businesses, the combination of the new ASC 606 standard and a reinvigorated regulatory agency has the makings of a “perfect storm”, particularly once the updated guidance comes into effect.
New Accounting Standards Meet Increased SEC Attention
The idea of the ‘perfect storm’ was first popularized by journalist Sebastian Junger in his book of the same name, set against the backdrop of the devastating Nor’easter of 1991. Though undeniably destructive, it was the origin of Junger’s storm that caught the public imagination: a chance combination of high-pressure systems, low-pressure systems, and tropical […]
Don’t Let Calls for Delays Stall Your ASC 606 Implementation
In the months since FASB and IASB released the finalized update to their revenue recognition guidance, both boards have seen significant pushback on the effective dates and timeframes for this far-reaching new standard. Last month, FASB Chairman Russell Golden announced that the board was in the process of researching whether implementation deadlines for the guidance – originally scheduled […]
Telecoms and ASC 606: Revenue Recognition Under the New Standards
When the US Financial Accounting Standard Board (FASB) released its updated revenue recognition guidelines earlier this year, it also spotlighted several industries likely to see substantial impacts from the new ASC 606 guidance. One of the most notable verticals on that list is telecommunications.
Break the Lock-In: When, Why, and How to Upgrade Your ERP System
Once your company reaches a certain size, ERP and financial systems become indispensable in your day-to-day operations. However, the more tightly you integrate these systems with your business processes, the harder — and more expensive — it becomes to upgrade or replace them.
New Revenue Guidance is Coming. Is Your ERP System Ready?
In an effort to streamline and update the revenue recognition process for businesses, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are in the final stages of converging their separate standards for revenue recognition cycles into a single standardized and improved model.
Tooling Up Your ERP for the Recurring Revenue Economy
Subscriptions Aren’t Just for Magazines Anymore In fact, for many businesses—both new and old—subscription-based contracts have become the norm. If you need proof of that, look no further than the software industry. Software was once a physical product: if you wanted to purchase a copy of Microsoft Office, you would pay Microsoft, and Microsoft would […]