The new Revenue Recognition Standard from the FASB/IASB is rumored to be finalized in the next month. Experts from the Big 4 and industry are developing plans to prepare for the changes.
ACS is hosting (2) two-day conferences to get attendees from industry up to speed on what the changes will mean for their organizations and industries.
The conferences focus on the new accounting standard and the practical differences from current GAAP. We’ll also have an industry panel discuss how they are planning to handle the changes and convey the changes throughout their organization as they prepare to adopt.
The SEC will also weigh in on rev rec related issues, we’ll cover Software as a Service (SAAS) accounting and case studies to further illustrate how the new standard will look in practice.
Pricing is $795 if you register well in advance – 45 days early.
Locations are Boston Hyatt Cambridge on September 19-20 and Santa Clara/San Jose, CA on December 3-4: https://www.acslive.com/events/revenue_2013.html
This year we have (4) 2-day Revenue Recognition conferences scheduled in Boston, Chicago and the Bay area (2x).
Here is a link to the agenda and details: https://acslive.com/events/revenue_2013.html
When the training was held in December 2012, we explored the accounting updates, exposure draft, fraud issues and spent some time on Software as a Service (SAAS).
One of the program highlights was PwC’s presentation on case studies/practical examples relating to how current US GAAP compares to the FASB Revenue Recognition Exposure Draft on collectibility, contingent revenue, sales to distributors, performance obligations over time, elimination of VSOE requirement for software transactions, use of the residual approach, term licenses, time value of money, disclosure implications.
Last month at the Revenue Recognition Accounting Conference at the Hyatt Santa Clara, Protiviti addressed the issue of how to adopt the potential changes of the FASB Revenue Recognition Project.
In a presentation titled, “Beyond the numbers – Lessons Learned/Best Practices” the speakers illustrated the far-reaching implications of the changes to the standard – including IT, HR, Treasury, Sales, Marketing, Legal, Operations…
Protiviti Managing Director, Steve Hobbs, led the discussion by revisiting the adoption of IFRS standards in Europe. Steve examined the lessons learned and showed the competing priorities at play as well as the resource constraints that accounting exec faced.
The presentation continued through an overview of the 6 elements of infrastructure and the capability maturity model frameworks.
Accounting Conferences and Seminars will offer multiple revenue recognition 2-day CPE conferences in 2013. Click this link to see the 4 events scheduled in San Jose, Chicago and Boston: https://www.acslive.com/events/revenue_2013.html
In December 2012, we held a two-day revenue recognition conference at the Hyatt Santa Clara led by Deloitte, E&Y, PwC, Protiviti with added paenlists from Intel, LinkedIn and SAP.
Here is a link to our 2013 event schedule: https://acslive.com/events/index.html
The opening session was led by Deloitte and they covered recent past issues including ASC 605-25, Common Application examples, Impact of ASU 2009-13, Cloud Computing and recent SEC Comments.
Deloitte followed up with a discussion of the exposure draft from the FASB/IASB, industry comment letter themes and cloud computing considerations.
This two-day conference qualifies for 16 hours of CPE in all states. We will offer an updated version of the two day Revenue Recognition Conference in March and December in Santa Clara, CA; June in Chicago and September in Boston.
The joint FASB/IASB Project began deliberations in 2002 with the final standard expected later this year (2012) and an effective date of 2015 or 2016. The Exposure draft was issued on November 14, 2011 – with comments due by March 13, 2012.
PwC’s Mike Sandusky observed at the recent Financial Accounting & Reporting Update in Philadelphia, “The proposed standard will be a significant shift in how revenue is recognized in many circumstances. The effect could be considerable, requiring management to perform a comprehensive review of existing contracts, business models, company practices, and accounting policies.”
Chris Lohin, Director of Revenue Accounting at SAP, shared the dais with Mike and mentioned that the implications for the standard could be very broad – and may extend to other functions within companies including IT, Treasury, Tax and even HR.
The scope of the project includes all entities and industries. Mike Sandusky covered the steps to apply the proposed standard in his presentation:
1. Identify the contract with the customer
2. Identify the separate performance obligation in the contract(s)
3. Determine the transaction price
4. Allocate the transaction price to the separate performance obligations
5. Recognize revenue when a performance obligation is satisfied
Mr. Sandusky and Mr. Lohin closed with a discussion of what companies should be doing now in preparation. Their recommendations included garnering an understanding of the new guidance in detail, determining the impact on your companies processes, systems and controls, creating a centralized repository of customer contracts and commenting on the exposure draft.
Accounting Conferences and Seminars has scheduled three conferences led by the Big 4 to review existing guidance and address the key developments in revenue recognition.
Revenue Recognition Accounting Update Conference scheduled for April 26-27 in D.C.; September 13-14 in Chicago and December 4-5 in Santa Clara, CA. Click here for the link to the agenda and registration information: