Accounting Standards Codification (ASC) 606 Revenue from Contracts with Customers is far reaching (also see Accounting Standards Update (ASU) 2014-09). Nearly every organization must address the way it sells products and services and establishes contracts with customers. In light of how entities will need to recognize revenue, this could impact key financial ratios, sales, contracts, technology systems, accounting, and internal controls.
Our specialists can help you understand revenue recognition rules and prepare for implementation in this incredibly complex area. Services include:
- Implementation methodology tailored to your organization
- Revenue assessment assistance
- Cross-functional technical resources
ASC 606, revenue recognition, insights
New accounting standards mean taxpayers in a variety of industries will face significant changes in how their revenue is recognized.
In this article we examine the final element, recognizing revenue as the entity satisfies the performance obligations.
ASC 606 - allocating the transaction price: the entity will recognize revenue for each performance obligation in the amount expected to receive in exchange for the promised goods or services.
WEBINAR: ASC 606 (revenue recognition) transition: Determining the transaction price (consideration)
Baker Tilly’s revenue recognition specialists delve into ASC 606’s elements and explore determining the transaction price and consideration in this recent webinar.
The AICPA Brokers and Dealers in Securities Revenue Recognition Task Force recently released a listing of nine potential ASC 606 revenue recognition implementation issues.
With this article, we explore the promise the customer makes with respect to the transaction price.
Understand performance obligations - identifying, distinct versus separate, explicit versus implicit promises, and warranties in the third revenue recognition webinar.
Once an entity has determined that it has a contract with a customer as defined in Accounting Standards Codification (ASC) 606, the entity must determine what the performance obligations are.
We discuss the conditions for a contract to be identified, collectibility requirement, combining contracts, and contract modifications in the second webinar in the revenue recognition series.
The first step in applying Accounting Standards Codification (ASC) 606 is to identify the contract(s) with the customer. In order to do so, the entity evaluates indicators of the existence of the contract. We will discuss these and other matters related to contracts, including combinations of contracts and contract modifications.
In this overview of the new standard, we provide an overview of the five elements, discuss areas of significant change such as contract costs and disclosures, and review the current transition guidance.
The long awaited new standards on revenue recognition, ASU 2014-09 (Topic 606), Revenue from Contracts with Customers will create changes in the process of how revenue is recognized.
Because the revenue recognition standard will change how organizations sell their offerings and establish commercial agreements (contracts) with customers, the implications go beyond purely accounting practices.
The revenue recognition standard has specific considerations for life sciences companies.
The FASB approved its April 2015 proposal to defer the effective date of ASU No. 2014-09, Revenue from Contracts with Customers, for all entities for one year.
The Financial Accounting Standards Board (FASB) voted to propose a one-year deferral of the effective date of the new revenue recognition standard, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), for both public and private entities.
After many years of discussion, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued the long awaited and converged revenue recognition standard.
The bodies that establish US and international accounting standards have released new guidance on the timing of companies’ revenue recognition.
For more information on revenue recognition, or to learn how Baker Tilly specialists can help, contact our team.