ASC 606: Transition Options – New Revenue Recognition Rules
Dec 3-4 at Hyatt Santa Clara
Revenue Recognition Accounting Conference hosted by Accounting Conferences and Seminars LLC
See all upcoming Revenue Recognition Conferences and other CPE Training Seminars here: 2016 CPE Training Events
Led by KPMG’s Deglan Reager: Deglan is a Director in KPMG’s Accounting Advisory Services group with over 8 years of accounting experience. He specializes in on-call technical accounting advice, accounting change services, and buy side assistance. Prior to joining the San Francisco office of KPMG’s Accounting Advisory Services group in 2009, Deglan worked as an auditor in KPMG’s New York City Office and then as a staff member at the Financial Accounting Standards Board (FASB) with a focus on the Revenue Recognition project and FASB Statement No. 167—Amendments to FASB Interpretation No. 46(R).
and KPMG’s Adrien Vion: Adrien Vion is a Manager with KPMG finance management advisory services practice based out of San Francisco. He has over 5 years of experience in Europe (KPMG France) assisting clients in key business process analysis and transformation as part of the Management Consulting practice. He has a strong international experience by working in over 15 different countries for his clients. He also has advanced operational skills in SAP.
Adrien is a key member of the KPMG team developing the integrated Revenue Recognition service offering.
Deglan and Adrien covered the current timeline for adoption of ASC 606 – the new rules on Revenue Recognition and discussed four main ideas:
1. Industry-specific guidance is eliminated and replaced with a single model
2. Significant judgements and estimated are required in many circumstances
3. New business requirements to comply will require changes to systems
4. There is a cumulative effect or retrospective transition method for adopting the standard which will require parallel processing of revenue for a period of time
Deglan covered the three current transitions options: full retrospective-no practical expedients, retrospective with practical expedients, and cumulative effect.
The choice of option will have a significant effect on the plan for Deglan recommends entities begin to: perform a high level analysis to idenitfy potential drivers of changes, determine the contracts that need to be restated, initiate the design of a model to compare revenue under current GAAP to revenue under the new rules, consider putting together a sub-group within the project team to focus on transition option considerations and finally monitoring the activities of implementation groups established by the FASB.
Adrien covered the broad impact to organizations including the obvious impact to accounting policies, the impact on ERP systems and peripheral systems and interfaces, the governance organization changes and the financial and operational changes.
See all upcoming Revenue Recognition Conferences and other CPE Training Seminars here: 2016 CPE Training Events