As most of you know, CFO Network focuses on all technical aspects of US GAAP accounting – from companies going through their very first audit, to companies considering M&A transactions, or an IPO, or public companies wrestling with the demands of SEC Reporting and SOX 404b.
At our core, we are very strong in the area of revenue recognition. Tony Riley and I would like to add our spin to the revenue recognition evolution that is the new accounting standard, or ASC 606 to us ‘accountants’.
The new revenue recognition may seem innocent enough and so most people are avoiding or underestimating it. However, the devil is in the details. Inaction today will impact the future and surprises could happen.
This change is not just for accountants. While the list of tasks for accountants is seemingly self-evident, ASC 606 has cross-functional impact including in areas such as:
- Internal Audit
- Treasury/loan covenants
- Sales & Marketing
Remember the early 2000’s and the disruption from the initial SOX compliance – too much to do, too few people to help. And that was for a compliance matter. Now we have a new way of calculating the top line!! How do we get people to take action! It is a problem for all of us.
- It’s effective 2018 – or has it really been in effect since January 1, 2016!!
In addition to the FEI Webinar, we have a couple of short pieces that may be of interest
- Our friends at Strategy Law issued a Memo from their legal point of view. (It is a 2-pager that is focused on the non-accountant.)
- CFO Network has a one page overview on the primary impacts of ASC 606.
If we haven’t caught up with you recently we’d love to hear what is going on.
Managing Directors, CFO Network LLC
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