Revenue Recognition – ASC 606 Roundup: 09/04/2018

This week’s edition covers a notable FASB update and recent earnings calls that included discussions around 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.



Accounting Today, “FASB updates disclosure requirements”, by Michael Cohn

FASB links: 

This article provides a solid synopsis of FASB updates that intersect with how companies need to handle ASC 606 in financial reports. Highlights include: 

  • The addition of a new chapter to the conceptual framework on disclosures in terms of what should be included in the notes to financial statements, discussion about the purpose of notes, what’s appropriate content for such notes, and limitations to consider. 
  • A discussion on interim reporting requirements.
  • A definition of materiality.

Our thoughts:  ASC 606 requires that companies augment their standard quantitative presentation of data in financial statements with qualitative information.  This qualitative information is typically presented in the “Notes” sections of financial statements.  This article will point you to the details of FASB’s recent updates to ensure ASC 606 information and other disclosures, are properly presented in upcoming filings.



Earnings Calls

Intuit Inc. Q4 2018 Results – Earnings Call Transcript

Our thoughts:  There are a high number of references to ASC 606 in this call script.  The company identifies that it adopted using a full retrospective method and restated FY 2017 and 2018 results under ASC 606.  The company also points readers to its website for a detailed presentation of its adoptions and impacts of ASC 606.

What’s clear is the company makes a key point to stress on this call that ASC 606 represents “an accounting change only and has no impact on customer billings or cash flow”.  Of additional value are the questions analysts put forward on the call regarding ASC 606 and the company’s responses.


Synopsys, Inc. Q3 2018 Results – Earnings Call Transcript

Our thoughts:  This earnings call touches on key topics such as a reduction in backlog (deferred revenue) and how sales commissions will be recognized due to ASC 606.  The company’s statements, and a subsequent question from an analyst, are instructive and worth a read., Inc. Q2 2019 Results – Earnings Call Transcript

Our thoughts:  Although there are only a few references to ASC 606 in this earnings call, the section that has such references offers high value.  Specifically, the company discusses how it updated its terminology to align with ASC 606 standards and then offers qualitative results to correspond with that terminology.


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 contact us to learn more about SOFTRAX and the value we can provide for your company’s ASC 606 adoption. 

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