ASC 606 Revenue Recognition Services: A Phased Implementation
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 for mature organizations, 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 framework 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.
Faced with these enormous challenges, companies are having trouble getting out of the starting gate. Unsure of how great an effect the new standard will have on their businesses, most companies haven’t yet figured out the scope of what they’re facing.
- The Solution: Leveraging our proven portfolio of helping clients of all sizes resolve revenue recognition issues of all stripes, Blythe Global Advisors has developed a four-phased implementation to meet all your ASC 606 requirements. It’s a soup-to-nuts process that starts with an impact assessment to enable you to understand the scope of what you’ll need to do for full compliance.
We deliver these services 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. With their corporate experience – many have worked as CFOs and controllers at global organizations – they understand the toll a major change can inflict on an otherwise smooth-running business.
Our clients can attest that we hit the ground running and always leave companies ready to meet their reporting obligations and better positioned to reach their strategic objectives.
- Our Services: Our four-step phased implementation process 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 four phases cover:
- Impact Assessment and Strategy: Orientation and level-set, contract reviews, impact study and project plan.
- Implementation: Including updated or new systems, policies and/or procedures.
- Year-End Close: Production of audit-ready documents.
- On-Going Maintenance: Liaison to the audit firm (anticipating needs, reducing costs and providing value up and down the reporting chain), companywide training as needed, etc.
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.