Introduction
ASC 606 and IFRS 15 were introduced to combat revenue recognition complications brought on by industry-specific norms and complex, fragmented practices across companies. They provide a common framework for businesses to recognize revenue consistently.
Public companies were required to comply with these standards as of January 2018; private companies must comply with these standards by January 2019.
Challenges for Services Firms
Number of Contracts
33% of companies
have over 5,000 contracts
that must conform to the new
standards
63% of companies
plan to leverage internal
resources to implement the
changes
35% of companies
described the disclosure
requirements as “very
challenging”
“We have before us a perfect accounting storm, the likes of which has not been seen since the late 1990s.”
– Denis Pombriant, Beagle Research, to Forbes
>50% of
respondents
worry they ultimately
won’t see any
business benefits
45% of
companies
are concerned
about making the
deadline
Check out our white paper to learn how we support revenue recognition for professional services companies and how we can help you become compliant in time!