Cherry Bekaert: Tax, Audit and Advisory Services Let's Talk SERVICES Revenue Recognition Navigating the Path to Success Implementation 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 was required to be implemented in 2018, and private companies must apply the standard in 2019. However, depending on the transition method selected and the number of years presented in financial reporting, its impact might already affect your financial statements. Have you considered the following: Are you prepared and ready for implementation? Do you know how your entity’s revenue recognition and disclosures will be impacted? Do you know how your entity’s processes and controls will change? The core principle of the new standard is that an entity should recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To replace the previously used industry guidance, the new standard establishes a five-step process to recognize revenue: Identify Contract(s) with Customer Identify Performance Obligation(s) (“P.O.”) in the Contract Determine Contract Price Allocate Transaction Price to Performance Obligation(s) Recognize Revenue When Entity Satisfies Performance Obligation(s) Brochures Assurance Services: The Road to Revenue Recognition – Navigating the Path to Implementation The Road to Revenue Recognition: Navigating the Path to Implementation – Financial Statement Disclosures – Attest 1 2 3 4 5 6 7 8 9 10 11 12 13 Let's Talk Chase Wright Partner, Assurance and Advisory Services Email Me Related Thought Leadership JUN 29 ARTICLE IRS Issues Revenue Procedures for Real Estate Partnerships DEC 13 ALERT Year-End Planning for Manufacturers View All Guidance Alerts Articles Brochures Case Studies Events Newsletters Podcasts Video Testimonials Webinar Recordings Industries Government Services Healthcare & Life Sciences Hospitality & Retail Not-for-Profits Industrial Manufacturing Private Equity Services Professional Services Real Estate & Construction Technology Services Assurance Tax Advisory Wealth Management Professionals Leadership About Us Why Cherry Bekaert Allinial Global Diversity & Inclusion Firm News Careers Client Support Client Support Pay Online Subscribe Atlanta | Augusta | Austin | Charlotte | Greenville | Hampton Roads | Houston | Los Angeles | Nashville | Orlando | Providence | Raleigh | Richmond | South Florida | Tampa | Washington DC © Copyright 2021 Cherry Bekaert. All Rights Reserved. Sitemap | Privacy Policy | Agreed Terms of Use | Careers | All Locations