With the effective date only a few months away for public (fiscal year after December 15, 2017) and private companies (fiscal year after December 15, 2018), both groups are supplementing their teams to ensure they will meet the deadlines. With the deadline fast approaching, companies have limited time to get it right and need to put their best effort forward by hiring experienced professionals with a track record of implementing the standard.
The revenue recognition standard implementation is more than a compliance exercise. In fact, CEOs have expressed to us that they need to know how revenue and EBITDA will be changing now to evaluate the proper time for future capital raising or a disposal.
The Partner in-Charge of our CFO Advisory Services practice is a former Big Four executive who has recently co-led the implementation of the new revenue standard for 20 subsidiaries of a global multi-billion dollar publicly held vehicle manufacturer and distributor with revenues exceeding $50 billion. He is recognized as a revenue recognition expert during his 25 years of experience while working on sophisticated revenue recognition assignments in San Jose, Los Angeles, Canada and Overseas for diversified industries.
Our CFO Advisory service offerings include:
- Implementation of new (Revenue Recognition & Leases) and/or complex accounting standards under US GAAP and IFRS
- IFRS conversions
- IPO Readiness
- Merger and Acquisition Due Diligence support
- SEC Investigation support
- Governance, Compliance, and Risk management including Internal control system development and/or remediation of weaknesses
- External and internal audit support
- Monthly, quarterly and annual closing support
- Interim management of accounting and finance departments/functions, or direct hire placement of CFOs, VPs, Controllers and Directors
The rules have considerably changed and the new revenue standard is arguably the most significant accounting change in recent history. It will affect each industry, and every company, in different ways. Further, it will impact so much more than the accounting area. Many companies will see substantial impact and risk for other areas such as legal, sales, internal controls, finance, information technology systems, tax, budgets and debt compliance. Specifically, one of these impacts will be how revenue under the new FASB standard will have to reconcile to reportable revenue for tax purposes.