ASC 606 Implementation Strategy with Connor Group and Leeyo Software

© 2014 Leeyo Software, Inc. All Rights Reserved. Confidential Information.

ASC 606Implementation Strategy

November 4, 2014

Aleks is a Partner and Head of Connor Group

Technical Accounting Interpretations

(professional practice).

Aleks has extensive hands-on US GAAP and

IFRS experience advising clients and other

Connor professionals in multiple complex areas,

such as revenue recognition, including adoption

of new revenue rules (ASC 606), business

acquisitions and dispositions, capital markets

including IPO and cross-border transactions,

stock compensation, inventories, complex

financial instruments, SEC reporting and

regulations; and various complex or unique

transactions. Aleks has an in-depth knowledge of

issues affecting private and public companies in

technology, software, cloud, other services,

biotechnology and pharmaceutical industries.

Jason is a Partner at Connor Group and

leads the Financial Operations (FinOps)

practice.

Jason is an expert in helping clients drive

business transformation and improve

processes, systems, controls and

organizational changes. He works across

finance and business operations helping

clients define their business goals, assess

operational performance/needs and helping

plan and implement broad based process

improvement initiatives often focused around

revenue recognition and quote-to-

cash. Jason is focused on supporting private

and public technology companies including

hardware, semi-conductors, software, SaaS,

Internet, cleantech, and biotech.

Jason Pikoos

A PREMIER PROFESSIONAL SERVICES ADVISORY FIRM

Connor Group professionals deliver to our global clients Technical Accounting, IPO

support, Mergers and Acquisitions, and Financial Operations services from our bases

in New York, San Francisco, Silicon Valley and Salt Lake City.Thought Leaders Since 2006

© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

2ASC 606 Implementation Strategy


3Today’s Landscape

Early stages of assessment

Extent of challenges, timeline and costs

Technical v. operational

ASC 606 interpretations

Automation

ASSESSMENT IMPLEMENTATION


5

Executive sponsors, PMO, team, initial budget

Revenues and costs streams

Quote to cash, Cost, Close, etc. processes

ERP and other IT systems

Business imperatives

A:1. Scoping and Business Review

ASC 606

Key risks

Expected impact

Oppor-tunities



6

Distinct deliverables

Standalone selling prices

Pattern of delivery and recognition

Transaction price estimates

Commissions and other costs

A:2. Technical Assessment

Calculations

Memos

Business

Auditors



7

Operational & accounting processes and controls (SOX)

Systems – financial & operational

Operational & accounting policies

Financial reporting, forecasting & metrics

Business objectives and strategy

A:3. Operational Assessment



8A:4-5. Detailed Plan and Approval

Accounting

Legal

SalesDetailed plan, timeline, resources, budget

Adoption dates and transition methods

Transition vs. post-transition operations

Management, auditor, Audit Committee presentations

Transition to Implementation phase

Tax

FP&A

IT



9I:1-5. Implementation

Implement and configure IT systems and tools

Update forms, templates, data, reports, checklists

Policies, process and control changes

Communication, training, transition

Process transactions, journal entries, disclosures, audit



10Sample Implementation Timeline

Owner 1 2 3 4 5 6 7 8 9 10 11 12

Weekly update calls CG/Client

Phase I: Assessment

I.a: Scoping and Business Review John

I.b: Technical Accounting Adoption Assessment Dave

I.c: Operational Implementation Assessment Sarah

I.d: Implementation Plan Bill

I.e: Management Report and BOD Presentation Bill

Phase II: Implementation

Communication within the organization Becky

Implement systems and tools Dave

Design and configure items required to facilitiate rev rec Rhonda

Implement changes in processes and controls Harry

Implement desired changes in business (eg. sku's, etc) Spencer

Update forms, templates, spreadsheets, reports, etc Rhonda

User Training Ben

Identify specific arrangements as of adoption date Jeff

Enable dual reporting during transition period Heather

Gather & process data and prepare jv's Jen

Activity

Months


12Connor Group Services and Contacts


Premier professional services advisory firm

Technical Accounting, IPOs, M&A and Financial Operations

Assistance with over 100 IPO’s; over 75 acquisitions

300+ clients on 5 continents

Big 4 alumni and industry executives

Independent and without auditor restrictions

13Thought Leaders Since 2006


• Revenue recognition SAB 104, SOP 97-2, EITF 08-1, ASC 606

• IPOs/Capital markets S-1, IPO readiness, PMO, 10Q/K, cross border trx

• Audit readiness Close books, PBCs, tech. papers, audit mgmt

• Equity and debt Debt, pref stock, warrants, SFAS 123R, EPS

• Mergers/acquisitions Due diligence, pro-formas, purchase accounting,

integration

• Financial Operations Key process design (e.g., Close, Revenue, Global

Entities, etc.), internal controls, ERP support

14Connor Group Services


15

ASC 606 Thought Leadership Team

Aleks Zabreyko Technical Interpretations [email protected] 408-409-3422

Denis Kozhevnikov Technical Interpretations [email protected] 650-521-3099

Jason Pikoos Systems and Processes [email protected] 408-368-9710

Jeff Pickett Global Markets [email protected] 408-569-2291

Regional Leaders

Jim Neesen Silicon Valley [email protected] 650-291-2105

Connie Dias San Francisco [email protected] 510-381-2176

Laurie Marchand Salt Lake City [email protected] 408-391-7964

Melissa Nietzel New York City [email protected] 415-516-9300

Contact Information

mailto:[email protected]









Contact Leeyo Software

• (408) 988-5800

• http://www.Leeyo.com

• 2841 Junction Ave #201, San Jose, CA 95134

• Matt Ream, marketing: [email protected]

LeeyoSoftware@LeeyoSoftwareCompany/

Leeyo-Software

http://leeyo.com/asc606.php


ASC 606 Implementation Strategy with Connor Group and Leeyo Software

Business

Transcript of ASC 606 Implementation Strategy with Connor Group and Leeyo Software