Intacct can help you master your transition to ASC-606 and IFRS-15. If spreadsheets are part of your revenue recognition and billing processes, you are headed into a “perfect storm” of regulatory change. To adopt these new guidelines, you need a financial system that’s supports this critical transition.
Learn how Intacct's best-in-class cloud ERP solution can improve your transition by:
--Automating the dual reporting that's necessary to both stay compliant and understand the impact of the changes on your results
--Tracking performance obligations even as your billing, packaging, and pricing models evolve
--Addressing all the new rules for revenue reallocation and expense amortization with automation, not spreadsheets
3. 3 Preferred
Provider
Business
Solutions
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
”“
4. 4 Preferred
Provider
Business
Solutions
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
obligations
Impact on Internal Controls:
• Periods on or after December 15, 2017 (public)
and 2018 (private)
• Applied retrospective or as cumulative catch up
Effective Dates:
5. 5 Preferred
Provider
Business
Solutions
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.
10. 10 Preferred
Provider
Business
Solutions
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?
12. 12 Preferred
Provider
Business
Solutions
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
13. 13 Preferred
Provider
Business
Solutions
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
14. 14 Preferred
Provider
Business
Solutions
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. 15 Preferred
Provider
Business
Solutions
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
24. 24 Preferred
Provider
Business
Solutions
Interested in Learning More?
• Try Intacct with a free 30-day trial
http://www.intacct.com/trial
• Attend an upcoming webinar
http://www.intacct.com/webinars
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@intacct
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• Contact us directly
info@intacct.com | 877-437-7765