This week’s edition covers notable news articles and recent earnings calls 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.
Middle Market Growth, “New Revenue Recognition Standard Could Prompt a New Story”, by Tam Harbert:
Our thoughts: This article is an interesting read on how ASC 606 could affect the way PE firms project growth, assign value, and market portfolio companies due to ASC 606. This article focuses on both the “art” and “science” factors that must be considered by PE firms for portfolio companies when ASC 606 is adopted. With the ASC 606 adoption date coming for private companies later this year, this article holds value on both content and timing fronts.
Recent Earnings Calls Referencing ASC 606
Avid Bioservices, Inc.:
Guidewire Software, Inc.:
Our thoughts: With over 25 references to ASC 606, these earnings call transcripts offer solid reads. Specifically, each provides real world examples of how companies presented ASC 606 information, questions analysts put forward in those areas, and how companies framed their responses. Additionally, the impacts of ASC 606 are discussed in the context of current financial results as well as what’s expected going forward.
To quickly identify the key areas, open each link and search for “606” in the transcript text.
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