Revenue Recognition Services
ASC 606 – “Revenue from Contracts with Customers” – with its directive for a single worldwide standard has turned revenue accounting on its ear. It affects companies of all sizes both private and public. Its requirements impact systems, processes and culture. Even if you’re a mature organization, successful implementation depends on a depth of professional knowledge that most companies don’t possess and that audit firms are restricted from providing.
When you need end-to-end revenue recognition services,
- The Challenge: For businesses, ASC 606 demands more management judgments and estimates in financial statements; requires changes to how companies conduct finance, sales, internal controls and IT functions; and can affect results depending on companies’ legacy reporting procedures and the contractual habits within their respective industries. At the point when audit firms enter the process, they’ll be expecting clients to produce updated, audit-ready documents that not only comply with the requirements of ASC 606 but also document clients’ accounting analyses with the precision that is necessary to meet the strict documentation requirements and escalating oversight of today’s financial reporting environment.
- The Solution: Blythe Global Advisors has a proven track record of helping clients – from startups to brand-name entities, U.S.-based and international – resolve revenue recognition issues. Since our founding in 2009, our revenue recognition experts have completed dozens of engagements. Our clients can attest that we hit the ground running and always leave companies ready to meet their reporting obligations and better situated to reach their strategic objectives.
We achieve our consistently high results through BlytheTeam©, our alliance of former Big Four partners/executives, current industry entrepreneurs, and former corporate finance and accounting senior executives/professionals. These experts bring extensive knowledge of U.S. and international accounting principles and regulations, seasoned leadership, project management skills, and expertise across a wide range of industries to every engagement.
- Our Services: If you need assistance to bring your revenue recognition practices up to snuff, we can take this critical item off your plate with a soup-to-nuts approach that features turnkey implementation; customizable, flexibly priced solutions; knowledge transfer and measurable results. Our services include:
- Assessment of current capabilities and the impact of the new standard on the organization.
- Evaluation of the new rule’s effect on revenue timing and results.
- Preparation of a blueprint for compliance.
- Implementation of updated or new systems, policies and/or procedures.
- Production of audit-ready documents.
- Liaison to the audit firm – anticipating needs, reducing costs and providing value up and down the reporting chain.
- Companywide training as needed.
Here are a few of our revenue recognition engagements:
- Assisted several technology and health science industry companies evaluate revenue recognition accounting policies and practices. Examples:
- Helped an IPO-bound technology company recast historical financial statements from IFRS standards to U.S. GAAP in connection with a software acquisition.
- Helped a public medical device company evaluate its revenue recognition policies to adapt its systems, processes and sales incentive programs to comply with ASC 606.
- Assisted companies in various stages of the IPO process with preparation of technical memos and accounting treatment related to revenue recognition, stock compensation, asset impairment, convertible debt, warrants and complex equity transactions. Example:
- Helped a private equity-backed company considering an IPO with an evaluation of how the proposed changes to the leasing and revenue recognition standards will impact the company’s financial statement and accounting processes.
See some of our revenue recognition clients here.