In 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued new standards on revenue recognition: “Revenue From Contracts With Customers” ASC 606 and IFRS 15 respectively. These standards outline a single model for revenue recognition from contracts with customers and it supersedes current industry-specific guidance, improving comparability across industries and across global markets.
In 2015, the FASB and IASB deferred adoption of the new standards by a year. This in effect requires all US GAAP public companies to adopt the new standards for reporting periods beginning after December 15, 2017. Non public companies are required to adopt the new standards a year later, i.e. calendar year 2019. Your organization, like many others, is most likely in the process of consulting with auditors and other advisors to determine how to adjust your processes and procedures for the new revenue accounting rules. Unfortunately, this is only half of your problem.
For many companies, their business systems will need to be adjusted to accommodate these new standards. These adjustments take on average of nine months or greater depending on size and complexity of the business. This assumes proven software to handle the new revenue recognition standards. For companies using Oracle software as the core of their business systems, there are two proven alternatives.
Oracle Revenue Management Cloud
RevStream Revenue Recognition Automation
OneGlobe has experience in both the areas of revenue recognition and the software solutions required to meet these standards. Get in touch with us to know more.