Insights

It’s Here. Are You Ready?

With the upcoming standard change deadline for non-public companies rapidly approaching, private companies should already have their implementation plans in place.

This comprehensive accounting change to revenue and revenue-related expense recognition is a major shift from a “rules-based” to “judgement-based” approach. ASC 606 requires private companies transform their business units, improve their data quality and adopt changes across the enterprise, affecting Accounting, HR, Legal, IT, as well as Sales & Marketing.

If your revenue has any of these attributes, you will be impacted by ASC 606:

  • Multi-element agreements 
  • IP/Software licensing 
  • Variable accounting estimates  
  • Change orders – replacement/modified contracts 
  • Customer loyalty programs 
  • Automatic renewal and/or subscription programs 
  • Pass-through arrangements 
  • Contract Life – Terms vs. Customer Life

Learn more about the significant changes private companies must make to adopt ASC 606. Click below to download a checklist of best practices to guide your organization through the process.

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