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Bramasol has just released a new quick tutorial video on "How to Download SAP RAR 1.2".
RevRec Hot-Tip: If you plan to run parallel for six months, you've got Less Than a Year to Be Ready!
The January 1, 2018 deadline is fast approaching and more and more companies are looking at their plan for implementing the new standards (ASC 606 and IFRS 15).
Per ASU 2014-09, a performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. If an entity promises in a contract to transfer more than one good or service to the customer, the entity should account for each promised good or service as a performance obligation only if it is (1) distinct or (2) a series of distinct goods or services that are substantially the same and have the same pattern of transfer.
One of the key first steps for implementing the new Revenue Recognition standard is to determine which adoption method, full retrospective or modified retrospective, will be used. This key decision will depend on several factors including resource availability, reporting requirements, and timing of the project. When you convert to the new method of recognizing revenue, the previous years of recognized revenue need to be migrated over so that you have the complete picture for ongoing contracts and revenue streams.
When evaluating how you will capture the required data, there are many considerations to include. Based on what we have seen with our customers, the gathering of information falls into three key categories:
As companies prepare for the new standard, a common trend can be seen: most companies undertake a Proof of Concept. There are many reasons for this, but the top 5 reasons can be grouped as follows:
View RevRec as an Opportunity to Transform and Improve Processes
The extent of impacts will vary by industry and by organization within the industry, but all companies will be impacted. Some of the changes this will cause include additional or expanded disclosures, the inclusion of additional estimates and judgments in external Financial Reporting, and most likely new or modified business processes and controls.
It is important to note the last impact item from above: new or modified business processes and controls. The new standard is not just an accounting exercise, but rather extends well past technical accounting into core business processes.
To get lots of detail on how to leverage these opportunities,, click here to read Larry McKinney's blog post "Revenue Recognition Projects: Driving Transformational Actions" on LinkedIn Pulse.
Read all of the RevRec Ready Hot Tips here.
Don't miss the upcoming webinar on February 25!
Assess Operational Loads and Data Migration.
- Model the operational loads for pre and post migration scenarios
- Plan Migration activities in early stages of the Project
- Assess the data load in terms of volume and complexity prior to migration.
Read all of the RevRec Ready Hot Tips here.
Not quite ready for a full blown project? Try a Proof of Concept.
Choose one or two key scenarios and work with a partner like Bramasol to implement them.
You will learn a lot about your partner, your business and what it will take to implement fully.
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Often the failure to get started and inability to lay out a well-structured path to success results from buying into the dangerous misconceptions that we call the “Seven Myths of Revenue Recognition”.
Learn about these myths and how to avoid being hurt by them.
