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.