Publicly traded and privately held companies are required to be compliant with the new revenue standard under ASC 606 for financial reporting periods beginning after December 15th, 2017 and December 15th, 2018, respectively. The implementation of ASC 606 is arguably the most significant development in recent history. Many companies will see substantial impact and risk for areas other than accounting such as legal, sales, and top management compensation plans, internal controls, information technology (“IT”) systems, tax, forecasts and budgets, debt compliance, business evaluation and earn outs for Merger and Acquisition transactions, and Key Performance Indicators for measuring the achievement of key business objectives. Thus, the new revenue standard will represent a substantial and complex effort for most entities. Even in cases in which material changes are not expected in revenue results, the new model will likely necessitate revised internal accounting policies and new processes, control points, disclosures, and systems. To read the full article click here.
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