4. 4 Preferred
Provider
Business
Solutions
ASC 606: The Most Significant Change in Decades
…and pressing
The changes
are sweeping…
Significant management judgment on
accounting for revenue recognition will now be
required, and the changes will have pervasive
impacts on people, policies, processes and
systems.
- “New Rules Impact Financial Statements and
Reporting,” PwC
”“
The time necessary to achieve a successful
implementation should not be underestimated.
- James Schnurr, Staff Accountant, SEC
”“
5. 5 Preferred
Provider
Business
Solutions
ASC 606 Summary
• Replaces all industry specific guidance
• No more VSOE for software companies
• 5 step principle-based process
Changing Guidelines:
• New rules increase amount of judgement
• Need for systematic approach to performance
obligations
Impact on Internal Controls:
• Periods on or after December 15, 2017 (public)
and 2018 (private)
• Applied retrospective or as cumulative catch up
Effective Dates:
6. 6 Preferred
Provider
Business
Solutions
ASC 606: Changing Guidelines
Accounting Similarities
• Expense amortization
• Revenue amortization
• Revenue reallocation
Accounting Differences
• No more recognizing revenue on
cash receipt
• Focus on single customer contract
• More frequent reallocation
• More frequent expense deferral
All active contracts must be stated under existing recognition guidelines
until transition, then under new guidelines after transition.
9. 9 Preferred
Provider
Business
Solutions
2017 2018 2019
Effective Dates for Companies
12/15/2018
private
Proposed Guidance—Annual Periods
12/15/2017
public
Subscription Term Dual Reporting (Private)
11. 11 Preferred
Provider
Business
Solutions
Finance Business Process Automation Lifecycle
Public
Growth
Early Stage
Seed Stage
Company
Stage
Time
Financial Reporting
Rev Rec
SAAS Metrics
Compliance
Payroll
Order Entry
Billing
Quote to Cash
A/P, A/R
CRM
Expenses
PSA
Closing FP&A
XRBL Reporting
Customer Success
12. 12 Preferred
Provider
Business
Solutions
Automate Revenue Recognition in an Integrated Manner
Public
Growth
Early Stage
Seed Stage
Company
Stage
Time
Financial Reporting
Rev Rec
SAAS Metrics
Compliance
Payroll
Order Entry
Billing
Quote to Cash
A/P, A/R
CRM
Expenses
PSA
Closing FP&A
XRBL Reporting
Customer Success
13. 13 Preferred
Provider
Business
Solutions
Intacct Contract and Revenue Management
• Grow revenues with flexible
pricing and automated billing
• Streamline your transition
to ASC 606
• Make your financial future
predictable
• Initiate contract workflows
in Salesforce
Contract
18. 18 Preferred
Provider
Business
Solutions
Interested in Learning More?
• Download a white paper
Mastering the Complexities of
Revenue Management
• Try Intacct with a free 30-day trial
http://www.intacct.com/trial
• Attend an upcoming webinar
http://www.intacct.com/webinars
• Follow us on Twitter
@intacct
• Connect with us on Facebook
http://www.facebook.com/Intacct
• Contact us directly
info@intacct.com | 877-437-7765