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Revenue Recognition - ASC 606 Roundup: 10/03/2018

Posted by Graham Hulme on Oct 3, 2018 4:49:37 PM

This week’s edition covers notable SEC Filings that focus on ASC 606. 

To quickly identify ASC 606 information in the below links, click on the link, hit Control + F, enter the text “606” or “2014-09” or "ASC" and click through your search results.

 

SEC Filings

WageWorks, Inc.: 8K, EX-99.1 of 8-K, and Wall Street Journal article regarding the filing

Our thoughts:  The names of the section titles in this filing tell the story: “Expected Impact of Restatement”, “Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing”, “Extension”, “Audit Committee Composition”, “Independent Review of Audit Committee Investigation”.  This filing is worth a read as it provides a picture of the lasting impacts of a company’s discovery, and subsequent recovery, from potential erroneous accounting practices and material weaknesses in its internal control over financial reporting. 

 

SCHOLASTIC CORPORATION, 10-Q:

Our thoughts:  Starting at the bottom of page 9 in the “2. Revenues” section, through page 13, the company puts forward key information regarding its adoption, impacts, and disclosures (including an informative “Disaggregated Revenue Data section”) specific to 606.  The company offers a solid narrative at the outset to explain the qualitative impacts and then moves into quantitative impacts with side-by-side before and after 606 information. 

 

Paychex, Inc., EX-99.1 of 8-K:

Our thoughts:  Starting in the second paragraph on page 2, the company puts forward a very good narrative of how ASC 606 caused them to modify how service revenue is disaggregated and marries it with the financial impacts of doing so.  It’s a quick read that will offer a solid working example on the type of qualitative information that end users of financial statements will want and expect post-ASC 606 adoption.

 

ASC 606 is not a challenge your company has to face settling for limited functionality in existing systems or through high risk manual efforts.  SOFTRAX provides superior experience, knowledge, products, and services to address your company’s ASC 606 needs.  We encourage you to visit http://www.softrax.com/about/contact-us to learn more about SOFTRAX and the value we can provide for your company’s ASC 606 adoption. 

Topics: Revenue Recognition, ASC 606, IFRS15, SEC Comments

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