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

Posted by Graham Hulme on Oct 10, 2018 5:00:00 PM

This week’s edition covers a few notable news articles and an SEC Filing 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.

 

News and Useful Information

 

Crain’s New York Business, Tax consequences of revenue recognition rules under ASC 606, by Alexandra Colman, Mark Sabates, and Eleni Lagos

Our thoughts:  The title of the article covers its central premise.  Of value are examples how ASC 606 will have tax impacts for 1.) current and future revenue, 2.) prior period revenue recognition, and 3.) sales returns.  The article is well-written as its examples are intuitive, practical, real-world scenarios that align 606’s requirements with associated tax impacts. 

 

 

Philadelphia Business Journal, Here's your warning Philadelphia private companies: Act now on new accounting standard, by Edward Sweeney, CEO at Pine Hill Group

Our thoughts:  The article has applicability beyond Philadelphia!  Notably, it offers a good ASC 606 primer for readers that are new, or need to bulk up on ASC 606.  While this might be more applicable for private companies at this point, it can’t hurt to read (it’s a 5-minute read at most) if your part of a public company.  One point that sticks out is a basic, yet illustrative, example of how the work to adopt 606 can catch up and explode on a company if tackling it too late.

 

 

SEC Filing

 

APOGEE ENTERPRISES, INC., 10-Q:

Our thoughts:  On page 9, within the “Significant accounting policies update” section, the company does a very good job of providing a clean story of its ASC 606 adoption and impacts.  The qualitative information provided, and how it’s provided, offers a valuable working example for companies to consider using in ASC 606 filings going forward. 

On page 12, the company offers a unique approach relative to other filings reviewed to date, presenting a disaggregation of its total revenues.  Finally, page 13’s “Contract assets and liabilities” section is worth a review in terms of how the company formats and presents this information.

 

 

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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