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Time is running out on ASC 606 revenue recognition implementation — Are you ready?

 

Time is running out on ASC 606 revenue recognition implementation — Are you ready?

Nov 13, 2019

Hopefully the answer to this question is a resounding yes! However, many companies may be more in the “I think so…” arena. Also, while we hope you don’t react by asking, “What is ASC 606?”, we understand that some companies may be in this scenario.

Wherever you are, we hope that our prior articles have helped you get closer to being aware of the changes that are coming and how you can prepare for them. Below is a list of these articles with a brief summary of each for your reference. Hopefully this helps!

1. Top 10 revenue recognition misconceptions

This article dives a little deeper into 10 common misconceptions relating to revenue recognition that we have seen with some of our clients as they have adopted the concepts in the new standard. Here is the link: /insights/articles/aa-top-10-revenue-recognition-misconceptions

2. Tax impacts of the revenue recognition standard

We have noted that so much of our clients’ efforts have been around digesting the impact of the new standard as it relates to financial reporting, but don’t forget about taxes.

This article discusses how the new standard will impact your taxes. Here is the link: /insights/articles/aa-tax-impacts-of-the-revenue-recognition-standard

3. Success Story: Telkonet Inc. – Satisfying ASC 606 Revenue Recognition

This success story is brief, but it does bring forth some good points as it relates to a client that adopted the standard last year. Here is the link: /success-stories/aa-telkonet-inc

4. 5 ways revenue recognition will affect you outside of recognizing income

While there are companies out there that will not have to change the amount and timing of their revenue recognition process, all companies that issue GAAP financial statements will have to substantially change their footnote disclosures.

This article discusses some of the key changes that companies will see to their disclosures. Here is the link: /insights/articles/aa-5-ways-revenue-recognition-will-affect-outside-recognizing-revenue

5. ASC 606 revenue recognition adoption methods: full retrospective or modified approach

Once you determine the impact of revenue recognition to your financial statements, your company will have to choose which adoption method you choose to pick.

This article will help you understand the pros and cons of each method. Here is the link: /insights/articles/aa-asc-606-revenue-recognition-methods-of-adoption

6. Industry-Specific Articles and Webinars

We have also authored some industry-specific articles and webinars that may be of interest to your company. They are below:

If you have any further questions about ASC 606 revenue recognition or would like to discuss your organization’s specific situation, reach out to us. We can help you make sure your organization is prepared for this complex standard. 


Author(s)

Colleen Cooke-Varallo
Colleen Cooke-Varallo, CPA
Partner
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