Standardizing Revenue Recognition

How services business should think about revenue recognition

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!

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