This week’s edition covers notable news articles and 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.
LEXOLOGY, “Weekly IRS Roundup September 17 – 21, 2018”, by McDermott Will & Emery – Kevin Hall
Our thoughts: See the September 19, 2018 section which it details that the IRS published Revenue Procedure 2018-49 “which allows taxpayers that early adopted a method of revenue recognition to change the such method to one described in Section 16.11 of Revenue Procedure 2018-31”.
Salesforce.com, Inc.: EX-99.1 of 8K
Our thoughts: This is an “Investor Day” document the company submitted that does an outstanding job of putting forward ASC 606 information in clear terms for the reader. It has many value points in terms of the quantitative data presented in addition to a strong qualitative presentation. See pages 6, 7, 41 through 46, and 55 through 57 for representations (primarily charts and graphs) of key ASC 606 concepts and impacts that the company put forward. A very strong presentation; worth a read.
Fonar Corporation, 10-K
Our thoughts: Page 32 offers a clean, to-the-point, presentation of the company’s assessment of ASC 606 and its impacts. Notably, the company points out how ASC 606 requires it to report an implicit price concession and how that impacts its accounting policies. Additionally, the company explains why it used a portfolio approach to apply 606.
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