If you’re one of the many companies that is impacted by the new revenue recognition standard going into effect in 2018, we have good news: We can offer you some resources to help deal with the change.
First of all, let’s recognize that while 2018 may sound far away, it’s not—particularly when it comes to developing new processes, possibly implementing new technology, and training your team to handle the new standards.
In fact, some consulting firms recommended that companies start a phased implementation approach in January 2016 to insure a smooth transition. But that doesn’t mean that you can’t be ready—it just means that you will need to get started ASAP and use an expedited schedule.
To help you toward your goal, here are some resources:
- AICPA provides a multi-step learning and implementation plan for meeting the new revenue recognition requirement, with links to additional information, which you can adapt for your own organization
- PWC offers a page with links to multiple resources including a survey on readiness, technical guidance on the new standard, and a discussion of implementation issues
- KPMG advises that while many companies are still disclosing that the effect of the new revenue standard is unknown–even though the standard was issued in 2014 and the mandatory adoption date is less than 15 months away for calendar year-end public companies—the group believes that the SEC staff is more likely to question this type of disclosure with the passage of time.
- MACPA summarized a reminder from the SEC in a speech for an accounting advisory panel meeting, when SEC Assistant Deputy Chief Accountant Jenifer Minke-Girard pointed out that it was the responsibility of public companies to disclose the impact of final FASB standards that have been issued, but not yet adopted. The article says that “The SEC Observer,” (Minke-Girard) “indicated that it is the SEC staff’s intention that the guidance included in this [SEC Staff] announcement be applied to the 2016 year-end financial statements of calendar year-end registrants.”
- The Five-Step Model for Revenue Recognition under ASC 606
- How the NetSuite Advanced Revenue Management (ARM) was built to streamline month-end processes so companies can close their books faster and be more confident with their revenue numbers
- How revenue management works with NetSuite’s ARM Multi-book feature to allow users to record the same transaction in separate books, according to separate rules
- And much more
How easy does NetSuite make it?
“You set up three things: the rules, the fair value prices and you do some basic item-level configuration. Everything else is automated…and then I really do nothing… I manage Rev Rec by exception,” says Joe Friedman, Director, Finance Center of Excellence at Netsuite.
Get your copy of this complimentary white paper—just click on the button below. And if you have questions, we are happy to help you with them; just email us at solutions@Blytheco.com