The Road to Revenue Recognition

The effective date for the new revenue recognition standard, ASC 606, Revenue from Contracts with Customers, is fast approaching. For public companies, the new standard is required to be implemented in 2018, and 2019 for private companies. However, depending on the transition method selected and the number of years presented in financial reporting, its impact might already affect your financial statements.

Understand Your Product and Services

  • General diagnostic discussion with management;
  • Review a sample of your customer contracts for stated deliverables; and
  • Assist you in identifying entity- and industry-specific implied deliverables.

Improved Cash Flow

The new standard will affect how all industries evaluate and document revenue recognition, and depending on your company’s industry, the new standard could have a material impact on the amount, timing and pattern of revenue.

All ThreadKore writer’s opinions are their own and do not constitute financial advice. Nothing published by ThreadKore constitutes an investment recommendation, nor should any data provided by ThreadKore be relied upon for investment activities. TheadKore strongly recommends that you do your own financial research and/or speak with a qualified financial advisor before acting on any financial decisions.