What will the impact of ASC 606 be on your organization?
This far-reaching accounting change will impact more than just a company’s audit. Systems, contracts, processes, internal controls, financial ratios, even compensation could be impacted by this new revenue recognition standard.
Accounting Standards Codification (ASC) 606 Revenue from Contracts with Customers (also see Accounting Standards Update (ASU) 2014-09) affects organizations in industries including:
|Asset management||Healthcare||Professional services|
|Banking||Higher education||Real estate|
|Distribution||Life sciences||Software and technology|
|Energy and utilities||Manufacturing|
Our industry specialists can help you understand how revenue recognition will impact your organization’s revenue streams, contracts, systems, internal controls, and help you prepare for implementation in this incredibly complex area. Services include:
What revenue streams should you be focusing on?
You need to understand what your current revenue stream types are, and which of those revenue streams pose a risk of high impact.
How will your systems, processes, controls be affected?
Once your revenue streams are identified, our team will work with your stakeholders to begin a detailed inventory and assessment of your contract types, specifically focusing on those contract types identified in the initial assessment as high impact.
What will need to be addressed to comply with ASC 606?
Based on the impact assessment, our professionals will analyze processes, systems, controls, and reports for gaps between what is currently in place and what will need to be done to comply.
What is the right path for your company to pursue?
Our multidisciplinary team will work with you to discuss strategy options, determine a plan that is the right fit for your organization, and develop the project plan to implement your strategy.
What should you expect in implementing your solution?
Once your strategy is determined and a plan established, our project management and change management professionals will assist you in an implementation managed specifically to your organization’s culture and its needs.
Have you addressed all controls?
After your solution has been implemented, internal controls must be tested and evaluated for deficiencies. As part of your ongoing management and testing, our professionals can assist with evaluation of your revenue-related internal controls against the COSO 2013 framework.