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Revenue Recognition - ASC 606 Roundup: 5/18/2018

Posted by Graham Hulme on May 18, 2018 5:00:00 PM

This week’s roundup focuses on 10-Q’s submitted during the week of 5/14/18. 

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Part Three: Excel is Not Secure

Posted by KristenLawson on May 18, 2018 12:00:00 PM

 

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We know a path you don't want to go down...

Posted by Graham Hulme on May 18, 2018 12:00:00 PM

 

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Revenue Recognition - ASC 606 Roundup: 5/11/2018

Posted by Graham Hulme on May 11, 2018 3:49:59 PM

As companies assess their implementations of the ASC 606 standard, many are looking to the first adopters and in particular, their initial disclosures and subsequent comment letters from the SEC. In this special-topic blog series from SOFTRAX, we take a look at what can be learned from your peers related to ASC 606. We'll round up what's noteworthy and point you to it with our commentary, so that you can focus your time on using these takeaways to help your own organization navigate the components of ASC 606.

This week’s roundup focuses on 10-Q’s submitted during the week of 5/7/18. 

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Revenue Recognition ASC 606 Round-Up: 5-4-2018

Posted by Graham Hulme on May 4, 2018 4:29:29 PM

As companies assess their implementations of the ASC 606 standard, many are looking to the first adopters and in particular, their initial disclosures and subsequent comment letters from the SEC. In this special-topic blog series from SOFTRAX, we take a look at what can be learned from your peers related to ASC 606. We'll round up what's noteworthy and point you to it with our commentary, so that you can focus your time on using these takeaways to help your own organization navigate the components of ASC 606.

This week’s roundup focuses on half a dozen 10-Q filings that had solid ASC 606 information.

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Revenue Recognition ASC 606 Round-Up

Posted by Graham Hulme on Apr 27, 2018 4:00:00 PM

As companies assess their implementations of the ASC 606 standard, many are looking to the first adopters and in particular, their initial disclosures and subsequent comment letters from the SEC. In this new series from SOFTRAX, we take a look at what can be learned from your peers related to ASC 606. We'll round up what's noteworthy and point you to it with our commentary, so that you can focus your time on using these takeaways to help your own organization navigate the components of ASC 606.

This week’s round-up targets recent S-1, 10-Q, and 10-K filings for companies that included ASC 606 adoption details and impacts.

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Half Empty, Half Full

Posted by Graham Hulme on Apr 2, 2018 8:00:00 AM

On February 23, 2018, GE submitted its most Recent 10-K.  Beyond financial results, it revealed key details on GE’s assessment, implementation, and disclosures specific to ASC 606.

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The Vision of Contract Assets and Liabilities

Posted by KristenLawson on Apr 2, 2018 8:00:00 AM

I’ll say this once, say it twice, and then say it three times: the ultimate goal of the FASB’s Accounting Standards Update ASC 606, is to provide a more consistent and comprehensive view of financials on both the national and international platforms to the users of financial statements (meaning we, the people).

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ASC 606:  Are there “Get Out of Jail Free” cards?

Posted by Graham Hulme on Mar 1, 2018 8:00:00 AM

 Anyone who has played Monopoly knows that every player wants that "Get Out of Jail Free" card...In real life, though, there are no "Get Out of Jail Free" cards for those adopting ASC 606. 

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Part Two: Excel is Error Prone

Posted by kristen Lawson on Mar 1, 2018 8:00:00 AM

In January, we posted a blog outlining five important reasons why excel spreadsheets were not to be trusted for implementation of the ASC 606 guidelines. Today, we’ll expand on the first point, “Excel is error-prone”.

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Is your company ready for the new revenue recognition exam?

Posted by Graham Hulme on Feb 1, 2018 8:00:00 AM

Have you hit the snooze button one too many times on your revenue recognition alarm? It’s every student’s (or accountant’s) nightmare: before you know it, the term has ended, and one of the most important tests of the year (ASC 606 and IFRS 15: Revenue from Contracts with Customers), is here.  Your teacher will soon hand you the revenue recognition standard exam – but are you ready?

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ASC 606 Adoption and Initial Disclosures

Posted by Jeff Halden on Feb 1, 2018 7:00:00 AM

Welcome again to our blog and continuation of the discussion of Disclosures related to the new FASB revenue guidance, ASC 606 - ‘Revenue from Contracts with Customers’.

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ASC 606 Adoption – Initial Disclosures

Posted by Jeff Halden on Jan 5, 2018 4:30:12 PM

Happy New Year! 

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Five Reasons Why You Shouldn’t Rely on Excel Spreadsheets for ASC 606

Posted by Julia Saad on Dec 28, 2017 1:06:08 PM

Public and private companies alike are at varying stages in adoption of the new revenue recognition standard, Revenue from Contracts with Customers. Many finance and accounting departments have experienced challenges in understanding and implementing the new rules as it applies to their business because the new ASC 606 guidance has proven to be more complex than initially anticipated.

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What Professional Services Organizations (PSO’s) need to do NOW to prepare for new Revenue Recognition Standards

Posted by Tonia Steciuk on Nov 13, 2017 12:44:10 PM

So the holiday season is just around the corner. Right around the second corner in the New Year, new revenue recognition regulations will be in front of us. Honestly. Really. 2018 is lurking in the hallway and there’s no avoiding it.

When talking to professional services organizations on a daily basis, Changepoint’s Director of Product Management, Greg Davidson, has come across many who still do not have enough information or do not clearly understand if there is an impact (or what the impact is). Or even avoiding it, hoping down the road someone will make it simpler! Although the pace has picked up considerably as we approach the effective date of 1 January 2018, there are still many organizations that need to ramp up their preparation.

Greg will be co-presenting a live webinar on November 16 (9am PSF / 12pm EST / 6pm CET) along with Jeff Halden from Softrax to address the impact of the new revenue recognition standard on PSO’s.

During the webinar, he’ll talk you through the ‘Five Step Framework’ of Revenue Recognition and highlight key areas of concern for PSO’s such as the treatment of revenue and how Professional Services Automation can help you better manage revenue recognition.

Happy Holidays!

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Calculating time value of money (TVM) for revenue recognition

Posted by Julia Saad on Oct 11, 2017 2:35:32 PM

The reporting deadlines imposed by the ASC 606 and IFRS 15 standards are fast approaching. That means the time for companies to get serious about implementing the new revenue recognition standards is now. Embedded within the regulations is the concept of a significant financing component, which means for many companies, adopting the new revenue recognition standard and managing the time value of money will have a significant impact on their business processes.

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Analyzing ERP System Options: ERP Augmentation Software

Posted by Julia Saad on Feb 8, 2017 10:51:57 AM

The complexities of FASB and the IASB’s new revenue recognition guidelines will place heavy strain on back office processes. For quarters starting after December 15, 2017, companies will be required, under ASC 606 and IFRS 15, to perform specific accounting processes that their existing ERP software or legacy systems don’t execute well or, in some cases, don’t offer at all. Companies considering making changes to their ERP or financial system, should have a clear strategy when it comes to complying with the new revenue recognition rules. ERP systems, by their nature, tend to be a ‘mile wide and ½ inch deep’.   They may not be up to this task, nor for that matter, well suited to the new recurring types of revenue associated with the subscription economy.  This blog post is the last in a four part series and focuses on a new approach called ERP augmentation.

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Analyzing Options - Rip & Replace ERP Systems

Posted by Julia Saad on Nov 23, 2016 1:43:43 PM

With the new ASC 606 and IFRS 15 regulations, companies cannot continue with their current revenue accounting practices. When legacy ERP systems no longer support financial processes, it's time to take action and analyze the options for upgrading ERP and financial systems. Organizations with complex revenue recognition must implement a system and a process to remain compliant. This blog series examines four options to get systems up to date – invest in the existing ERP system, supplement with spreadsheets, rip and replace systems, and augment the ERP system. In this blog post, we will help companies analyze the possibility of a “Rip & Replace” of their ERP system with new software.

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Updating ERP Systems: Analyzing the use of Spreadsheets for Accounting

Posted by Julia Saad on Oct 7, 2016 9:29:31 AM

When it comes to revenue recognition and billing, ERP systems do not have the depth of functionality needed to process revenue under the new ASC 606 and IFRS 15 guidelines. Many finance professionals must use manual methods outside the ERP system to address these challenges.

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Analyzing the Options: ERP Customization

Posted by Julia Saad on Sep 9, 2016 3:26:01 PM

New business models and FASB’s new revenue recognition guidelines pose a threat to existing ERP systems. Some companies have achieved business improvement from their ERP systems. However, many companies are quickly realizing that the key benefits, once leveraged from their Enterprise Resource Planning (ERP) system, are now unavailable due to the increasing complexities stated above.

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Analyzing the Options: Updating Enterprise Resource Planning Systems

Posted by Julia Saad on Aug 31, 2016 5:06:13 PM

Enterprise Resource Planning Systems are vital to a company’s success.  However, these systems need to be maintained and enhanced to protect their value and serve a company’s changing regulatory needs in an ever changing business landscape. For instance, new business models such as IoT, recurring revenue, and changing regulations (ASC 606 and IFRS 15), all put pressure on back office processes to keep up. 

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Revenue Recognition Guidelines: The Time Is Now

Posted by Julia Saad on Jul 22, 2016 2:54:23 PM

It’s time to start preparing for the new revenue recognition guidelines. Whether you like it or not, ASC 606 / IFRS 15 changes are here and could have a significant impact on your company's reporting, systems, processes, and controls.   Companies should start planning now in order to ensure a successful transition to the new ASC 606 / IFRS 15 guidelines.

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Softrax View: ASC606 Perspectives From Our Revenue Recognition Experts

Posted by Julia Saad on Jun 24, 2016 9:00:36 AM

Organization must keep pace with new recurring revenue models while complying with tremendous change brought on by the new revenue recognition standard embodied in IFRS15 / ASC606.  Companies who want to be successful in overcoming revenue recognition challenges should be proactive and start implementing a plan for ASC 606 immediately.  Public companies must adopt the new standard for periods starting after Dec, 2017.  Private companies must adopt for periods starting after Dec, 2018.  There is a lot of work to be done.

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Weathering The Storm: ASC 606 Solutions

Posted by Julia Saad on Feb 1, 2016 4:50:17 PM

To ensure consistent application of rev rec rules, companies need to be armed with a strong internal understanding of how ASC606 applies to their particular business model. Where internal know-how comes up short, third-party consultants can provide the additional expertise – and peace of mind – when assessing the impact of revenue recognition.

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Implications of Applying New ASC 606 Rev Rec Rules

Posted by Julia Saad on Jan 21, 2016 9:55:47 AM

The new revenue recognition standard is being converted into a single model across all industries. The new global framework for revenue accounting has numerous challenges for companies including: Application and Controls.   Application was described in the previous blog post.

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Challenges of Applying New Revenue Recognition Rules

Posted by Julia Saad on Jan 11, 2016 10:30:30 AM

Application of ASC 606 is a major issue for businesses impacted by the new revenue recognition rules. Most companies seem to be generally familiar with the new revenue recognition standard; however, there are specific areas within the rules are vague. Many are left with wondering how the new revenue recognition rules will impact their business.  This causes major challenges and risks for any business that doesn't take the time to fully understand how ASC 606 and IFRS 15 affects their operations. 

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The Most Popular Softrax Blog Posts from 2015

Posted by Julia Saad on Jan 6, 2016 9:43:57 AM

As 2015 comes to a close, were reflecting on all of the exciting revenue recognition standard and awesome tips that we published on the Softrax Blog this year. Did you catch these most popular blog posts on our Softrax Blog? We've compiled them below.

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The Reinvigorated Regulatory Agency, The SEC Takes Action on Improper Revenue Recognition

Posted by Julia Saad on Jan 4, 2016 9:54:25 AM

The new revenue recognition rules are daunting and many companies wonder how they will be impacted by ASC 606.  What really happens to companies if they don't comply with the new revenue recognition rules? Who enforces these rules? The reinvigorated regulatory agecny, the SEC takes action on improper revenue recognition accounting. Learn about the SEC's role with revenue recognition and how to avoid improper revenue accounting.

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The Making of the Perfect Storm: Part 1 Impact New ASC 606 regulations

Posted by Julia Saad on Dec 28, 2015 1:37:14 PM

Companies will be required to adopt a new universal framework for revenue recognition – one that will hold regardless of vertical, product or service. Currently we have two different standards US GAAP and IFRS 15.  The US Financial Accounting Standards Board (FASB) and its international counterpart, the IASB, have spent a significant amount of time reassessing their respective principles and decided to standardize revenue recognition into one common standard – ASC606.

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Impact of New Revenue Recognition Accounting Standard

Posted by Julia Saad on Dec 22, 2015 5:24:27 PM

For many businesses, the combination of new ASC606 standard and a reinvigorated regulatory agency has the makings of a “perfect storm”, particularly once the updated guidance comes into effect.  

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New Accounting Standards Meet Increased SEC Attention

Posted by Martin Sachs on Jun 16, 2015 4:49:00 PM

The idea of the ‘perfect storm’ was first popularized by journalist Sebastian Junger in his book of the same name, set against the backdrop of the devastating Nor’easter of 1991. Though undeniably destructive, it was the origin of Junger’s storm that caught the public imagination: a chance combination of high-pressure systems, low-pressure systems, and tropical moisture, it showed that three unrelated phenomena coming together at just the right moment could spark a $200M disaster far greater than the sum of its parts.

It’s an apt metaphor for the challenges US businesses currently face, created – like that fateful Nor’easter – by a collision of three separate processes:

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Don't Let Calls for Delays Stall Your ASC 606 Implementation

Posted by Martin Sachs on Jan 20, 2015 11:17:00 AM

In the months since FASB and IASB released the finalized update to their revenue recognition guidance, both boards have seen significant pushback on the effective dates and timeframes for this far-reaching new standard. Last month, FASB Chairman Russell Golden announced that the board was in the process of researching whether implementation deadlines for the guidance – originally scheduled for 2017 and 2018 for public and private organizations, respectively  needed to be pushed back. 

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Telecoms and ASC 606: Revenue Recognition Under the New Standards

Posted by Martin Sachs on Oct 2, 2014 10:13:00 AM

When the US Financial Accounting Standard Board (FASB) released its updated revenue recognition guidelines earlier this year, it also spotlighted several industries likely to see substantial impacts from the new ASC 606 guidance. One the most notable verticals on that list: telecommunications.

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Break the Lock-In: When, Why, and How to Upgrade Your ERP System

Posted by Martin Sachs on Feb 18, 2014 2:11:00 PM

Once your company reaches a certain size, ERP and financial systems become indispensable in your day-to-day operations. However, the more tightly you integrate these systems with your business processes, the harder -- and more expensive -- it becomes to upgrade or replace them.

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New Revenue Guidance is Coming. Is Your ERP System Ready?

Posted by Martin Sachs on Jan 23, 2014 2:33:00 PM

In an effort to streamline and update the revenue recognition process for businesses, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are in the final stages of converging their separate standards for revenue recognition cycles into a single standardized and improved model.

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Tooling Up Your ERP for the Subscription Economy

Posted by Martin Sachs on Jan 15, 2014 11:12:00 AM

Subscriptions aren’t just for magazines anymore.

In fact, for many businesses—both new and old—subscription-based contracts have become the norm. If you need proof of that, look no further than the software industry. Software was once a physical product: if you wanted to purchase a copy of Microsoft Office, you would pay Microsoft, and Microsoft would deliver you a CD (or in the older days, floppy disks) with the application on it.

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ERP Augmentation: What It Is and Why You Should Care

Posted by Martin Sachs on Jan 8, 2014 4:22:00 PM

There’s something to be said for not messing around with something that works. When corporate technology expert Andy Ziegele told Profit Magazine in 2009 that companies should stick to “vanilla” implementations of their enterprise resource planning (ERP) systems as much as possible, it was at the tail end of a string of high-profile and costly ERP implementation disasters spanning the past decade. Companies, Ziegele argued, are not as different as they think, and often their desire for customization is driven more by politics than by a business process so unique that an off-the-shelf ERP can’t handle it.

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Getting Started with Advanced Revenue Management Solutions

Posted by Martin Sachs on Dec 26, 2013 3:30:00 PM

In today’s marketplace, revenue information is under heavy scrutiny, and is frequently audited. Reliable, accurate revenue reporting is absolutely essential for any business, particularly when it comes to complying with government regulations such as Sarbanes-Oxley.

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Want Financial Security and Controls? Drop Your Spreadsheets

Posted by Martin Sachs on Nov 14, 2013 3:07:00 PM

For younger companies, spreadsheets can be an excellent stop-gap solution for many different applications. They perform valuable mathematical functions and are easy to use, store and access. In smaller companies, they can even be successfully used to identify revenue and manage billing. However, in larger organizations, such methods simply can’t deliver the level of functionality required.

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Improving Corporate Visibility by Eliminating Spreadsheets

Posted by Martin Sachs on Nov 5, 2013 4:53:00 PM

Many companies use a variety of spreadsheets or home-grown applications to sort out, store, and manage their financial data. Either approach is very flexible and capable of doing almost anything. Unfortunately, that very flexibility makes it difficult to develop reusable reports or dashboards that provide the correct visibility into the business, and that are readily available. When executives or auditors require information on the financial state of a company, getting that information usually entails a high-value resource with strong knowledge of the spreadsheets used to track this information developing a custom, one-time report.  Though this report can provide a great deal of intelligence on where the company stands, it typically requires time and effort to construct, and often has limited reuse potential. Too, this report will often represent a snap-shot in time; by the time the report is constructed, it is very possible that the financial picture has already changed.

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How to Shop for Complex Billing and Revenue Management Systems

Posted by Martin Sachs on Oct 31, 2013 3:01:00 PM

Some companies need a robust billing and/or revenue management solution. Others don’t. If you run a small to medium-sized business with traditional accounting procedures and a simple billing structure, your business needs can probably met by Microsoft Excel or a generic enterprise resource planning (ERP) system like Oracle, SAP, or Microsoft Dynamics.

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The Pros of a Complex Billing and Revenue Management System

Posted by Martin Sachs on Oct 24, 2013 3:29:00 PM

Conventional spreadsheet applications like Microsoft Excel are fine for small businesses with simple billing procedures and uncomplicated revenue streams. Spreadsheets may be time-consuming to manage, but they'll carry out the required calculations and provide you with straightforward data.

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Kick the Spreadsheet Habit with Automated Revenue Management

Posted by Martin Sachs on Oct 22, 2013 8:29:00 PM

In many ways, spreadsheet applications like Microsoft Excel are the backbone of the business world. With a little ingenuity, they handle everything from project management to employee expenses -- the ideal tool for companies that may not be ready to commit to a full-blown ERP system.

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