ASC 606 Implementation Strategy with Connor Group and Leeyo Software
Mastering Your Transition to ASC-606 IFRS-15
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Master Your Transition to ASC 606 and IFRS 15
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Transcript of Mastering Your Transition to ASC-606 IFRS-15
Master Your Transition to ASC 606 and IFRS 15
2 Preferred Provider
BusinessSolutions
Topics
• ASC 606 summary and transition challenges– Changing guidelines– Effective dates
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BusinessSolutions
ASC 606: The Most Significant Changes in Decades
…and pressing
The changes are sweeping…
Significant management judgment on accounting for revenue recognition will now be required, and the changes will have pervasive
impacts on people, policies, processes and systems.
- “New Rules Impact Financial Statements and Reporting,” PwC
”“
The time necessary to achieve a successful implementation should not be underestimated.
- James Schnurr, Staff Accountant, SEC
”“
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BusinessSolutions
ASC 606 Summary
• Replaces all industry specific guidance• No more VSOE for software companies• 5 step principle-based process
Changing Guidelines:
• New rules increase amount of judgement• Need for systematic approach to performance
obligationsImpact on Internal Controls:
• Periods on or after December 15, 2017 (public) and 2018 (private)
• Applied retrospective or as cumulative catch upEffective Dates:
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BusinessSolutions
ASC 606: Changing Guidelines
Accounting Similarities• Expense amortization• Revenue amortization• Revenue reallocation
Accounting Differences• No more recognizing revenue on
cash receipt• Focus on single customer contract• More frequent reallocation • More frequent expense deferral
All active contracts must be stated under existing recognition guidelines until transition, then under new guidelines after transition.
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BusinessSolutions
2016 2017 2018 2019
ASC 606: Effective Date
12/15/2018private
Annual Periods
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BusinessSolutions
2016 2017 2018 2019
ASC 606: Effective Date
12/15/2018private
Annual Periods
12/15/2017
public
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BusinessSolutions
2016 2017 2018 2019
ASC 606: Effective Date
12/15/2018private
Annual Periods
12/15/2017
public
Subscription Term
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BusinessSolutions
2016 2017 2018 2019
ASC 606: Effective Date
12/15/2018private
Annual Periods
12/15/2017
public
Subscription Term Dual Reporting (Public)
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BusinessSolutions
ASC 606 for Subscription Companies - Challenges
Reallocations for contract changes
Regular deferral of expenses
No more revenue recognition on cash receipt
Impacts on forecasting
Dual reporting during transition
Are you READY?
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BusinessSolutions
Coping Using Typical Measures Will Be Impossible
Revenue forecasting
Dual reporting during transition
Regular deferral of expenses
Reallocations for contract changes
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BusinessSolutions
Coping Using Typical Measures Will Be Impossible
Billing
Accounting
Forecasting
Contract
Revenue forecasting
Dual reporting during transition
Regular deferral of expenses
Reallocations for contract changes
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BusinessSolutions
Business growth
Coping Using Typical Measures Will Be Impossible
Billing
Accounting
Forecasting
Contract
Revenue forecasting
Dual reporting during transition
Regular deferral of expenses
Reallocations for contract changes
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BusinessSolutions
Business growth
Coping Using Typical Measures Will Be Impossible
Billing
Accounting
Forecasting
Contract
Revenue forecasting
Dual reporting during transition
Regular deferral of expenses
Reallocations for contract changes
15 Preferred Provider
BusinessSolutions
INTACCT CONTRACT AND REVENUE MANAGEMENT
Automation and controls for your transition
to ASC 606
Intacct Contract and Revenue Management
Contract
Business growth
Revenue forecasting
Dual reporting during transition
Regular deferral of expenses
Reallocations for contract changes
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BusinessSolutions
Deep Automation for ASC 606 Complexities
Dual TreatmentCurrent and new revenue recognition rules simultaneously
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BusinessSolutions
Deep Automation for ASC 606 Complexities
Dual ReportingTo prepare TODAY for the upcoming changes
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BusinessSolutions
Deep Automation for ASC 606 Complexities
Expense ManagementLink to specific line items or overall contract for amortization
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BusinessSolutions
Demonstrate Controls for ASC 606
Contract-based ArchitectureOrganize performance obligations, drive billing and reporting
20 Preferred Provider
BusinessSolutions
Intacct: Only Seamless Solution to Complexity
ORDER
BILLCONSOLIDATE
REPORT
CPQ
EXPENSE RECOGNIZE
CustomerContract
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BusinessSolutions
Reporting andAnalytics
SubscriptionBilling
ExpenseManagement
RevenueManagement
Intacct: Only Seamless Solution to Complexity
ORDER
BILLCONSOLIDATE
REPORT
CPQ
EXPENSE RECOGNIZE
CustomerContract
22 Preferred Provider
BusinessSolutions
Thrive in Subscription
EconomyReporting and
AnalyticsSubscription
Billing
ExpenseManagement
RevenueManagement
Intacct: Only Seamless Solution to Complexity
ORDER
BILLCONSOLIDATE
REPORT
CPQ
EXPENSE RECOGNIZE
CustomerContract
23 Preferred Provider
BusinessSolutions
Thrive in Subscription
Economy
Master Accounting Transition
Reporting andAnalytics
SubscriptionBilling
ExpenseManagement
RevenueManagement
Intacct: Only Seamless Solution to Complexity
ORDER
BILLCONSOLIDATE
REPORT
CPQ
EXPENSE RECOGNIZE
CustomerContract
24 Preferred Provider
BusinessSolutions
Interested in Learning More?
• Try Intacct with a free 30-day trialhttp://www.intacct.com/trial
• Attend an upcoming webinarhttp://www.intacct.com/webinars
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• Contact us [email protected] | 877-437-7765
