The new revenue recognition standards issued by FASB and the IASB represent the most significant accounting change for US businesses since Sarbanes-Oxley. Public companies are expected to comply with the new regulations by the end of 2017. Private companies must start using them by December 2018. It's more critical than ever to understand how the new rules will affect the way you report your revenue - and how they change your financial risk reporting profile.
Countdown to Revenue Recognition
What's Changing in FASB ASC 606 and IFRS 15?
Under the new guidance, old, industry-specific guidelines for revenue recognition are replaced with a 5-step procedure:
Identify the contract with the customer
Identify the performance obligations in the contract
Determine the overall transaction price for the contract
Allocate the transaction price to the performance obligations
Recognize Revenue when performance obligations are satisfied
What Are The Transition Options?
Retrospective Method
Retrospective adjustment: Use prior revenue recognition rules in the period leading up to the changeover, then provide updated financials for that time period using the new guidelines in the 2018/2019 financial statements.
Cummulative Method
Cumulative effect adjustment: Use prior revenue recognition rules in the period leading up to the changeover. In doing so, disclose how each line item will be affected by the new guidance, and explain any significant changes created by applying the new versus the prior guidance.
Softrax: built to Ease Your Transition
Our family of revenue management solutions can help take the stress out of this transition with minimal disruption to your business. SOFTRAX works alongside your existing systems, building up revenue recognition capabilities when and where they're needed most through improved automation, controls, and security.
Why Choose SOFTRAX?
EXPERIENCE
Since 1999, hundreds of corporations have used our solutions to optimize revenue, reduce operating expenses, streamline compliance, and gain unprecedented visibility into their business performance.
17+ YEARS OF EXPERIENCE
EXPERTISE
Our customers represent some of the most successful, innovative, and high-growth enterprises in the world. With hundreds of successful customer deployments, SOFTRAX offers both expertise and experience where it is needed most.
500+ CUSTOMER DEPLOYMENTS
ERP AUGMENTATION
SOFTRAX provides solutions that integrate with your existing ERP and financial systems, expanding their capabilities to meet new and emerging business need with a minimum of disruption.
200+ ERP SYSTEMS
RESULTS
For almost 2 decades, companies have been managing billions of dollars with our products. In industry after industry, SOFTRAX has successfully streamlined business processes, increased efficiency, and delivered real hard-dollar savings.
17+ YEARS OF EXPERIENCE
COMPLIANCE
Time is running out to adopt these standards. SOFTRAX provides the most rapid, least disruptive means of automating revenue recognition to ensure compliance in this time of regulatory change.
ASC 606 / IFRS 15 AND BEYOND
SUPPORT
SOFTRAX provides premium customer support including a team of dedicated support staff who can respond quickly and meet the individual needs of each of our customers.
