Our global teams of accounting professionals can help you evaluate the likely changes to your business, determine how significant the changes will be going forward, and help you implement the standards utilising our project tools.
In May 2014, the accounting standards 'IFRS 15' and 'ASC 606' were released, which replace almost all existing IFRS and US GAAP guidance on revenue recognition. Both standards will become effective at the start of 2018.
The core principle of the new revenue recognition guidance is that companies recognise revenue when transfer of control occurs - either over-time or at a point in time.
The challenge
These changes will have a pervasive business and accounting impact across all industries. Although some companies will have relatively few changes to the timing and amounts of revenue recognition, this will need to be fully assessed in order to support this conclusion.
Implementing the new standards presents challenges for many companies such as assessing whether or not systems, processes and internal controls are ready to capture the data needed for forming and monitoring new estimates.
How we can help
With only a couple of years before the effective date, we can help you with:
- Determining how the standard affects your financial picture, your investors, and the way you do business
- Developing an approach that efficiently allows you to assess the impact and then decide on a subsequent action plan
- Establishing a robust governance structure and agreeing project management and change management protocol
