The deadline for private companies to adopt the new revenue recognition standard (ASC 606) is rapidly approaching. Depending on the industry and contract terms, the adoption and implementation is expected to be a time-consuming and difficult task to navigate, with a full implementation ranging from a few weeks to several months. The new revenue standard may affect several sectors of your business, including timing of revenue recognition, debt covenants, income taxes, financial statement disclosures, and various other areas. Your organization should be taking steps now to gain a greater understanding of the new guidelines, educate management and key stakeholders about the potential impacts, and prepare for a successful implementation.
All U.S. GAAP nonpublic entities are required to adopt the new standard for annual reporting periods beginning after December 15, 2018. For nonpublic entities that report under IFRS, there is a similar new revenue recognition standard (IFRS 15) that is effective for periods beginning on or after January 1, 2018.
Revenue Recognition Implementation Team
Elliott Davis has the knowledge and experience needed to support and guide you through the entire process, from the discovery phase to final implementation. For more information or answers to your questions, please contact your Elliott Davis advisor or a member of our Revenue Recognition Implementation Team: firstname.lastname@example.org.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.