Over the past months, we reviewed public companies’ filings to understand how they planned, implemented, and adopted ASC 606. As the ASC 606 adoption date has come and gone, and many companies are filing their first 10-Q’s under ASC 606, an important point to consider is the extent to which the SEC will do in-depth comparisons between a company’s 10-K filing before adopting ASC 606 and its 10-Q filing after adopting ASC 606. This specific point stood out when we were comparing Amazon’s 10-K filing, where Amazon stated its ASC 606 plan and expected impacts, to its recent 10-Q filing which was its first under ASC 606.
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”.