There are only six months left before the mandated adoption of new Revenue Recognition standards ASC 606 and IFRS 15.
Since companies need to comply with legal disclosure reporting requirements, including a retrospective dual-reporting period between current ASC 605 and new ASC 606, it is critical that you have a clear disclosure reporting plan in place, NOW!
The Wall Street Journal (WSJ) published an article on June 5, 2017 titled "Tech Teams Rush to Catch Up as New Accounting Rule Looms", which provides an excellent overview of what companies are up against as the countdown clock races toward the January 2018 deadline.
Here is a key excerpt from the article:
"For large corporations, the task is arduous and complicated: Accountants are scouring thousands of bills and contracts to determine if they must change how they book the sales for fiscal years beginning after Dec. 15. Meanwhile, tech departments are writing new code, upgrading their systems and investing in expensive new software as they work to ensure their increasingly automated finance operations can keep up.
It’s not clear all of them can.
For large corporations, the task is arduous and complicated: Accountants are scouring thousands of bills and contracts to determine if they must change how they book the sales for fiscal years beginning after Dec. 15.
Meanwhile, tech departments are writing new code, upgrading their systems and investing in expensive new software as they work to ensure their increasingly automated finance operations can keep up.
It’s not clear all of them can."
The article also states that: "Large companies often have legacy IT systems cobbled together over decades and through multiple acquisitions. Changing something as integral as revenue recognition often means dismembering the complex systems and then putting them back together".
Overcoming these challenges is the primary goal of SAP Revenue Accounting and Reporting (RAR), which was designed from the bottom up as a powerful, flexible RevRec reporting engine that can be used with existing SAP ECC and a wide range of 3rd Party ERP and legacy financial systems.
As a co-innovator with SAP on the development and deployment of SAP RAR, Bramasol is the industry leader in helping companies come to grips with the reality of the new RevRec standards.
Part of our work on this topic has been hosting a series of monthly Revenue Recognition Webinars for over 18 months. Click Here to view Videos of Past Revenue Recognition Webinars.
To learn the latest about Disclosure Reporting and the Dual-Reporting requirements referenced above, click below to register for June 28 Webinar on Dual-Reporting with SAP RAR.
As the leaders in SAP RevRec we can help you be prepared and ready…
Call us at (866) 625-9878 or Click Below to Request RevRec Help
