Revenue Recognition Rules Are Changing: What Should You Do?
With an effective date rapidly approaching preparations should be made now. The impact of the new standard is likely to be different for each company, and will depend on the industry in which they operate.
The rules are open to interpretation and industry specific interpretation of rules are still under discussion. Talk with your auditors for guidance on how these rules apply to your company and work to develop a plan to address the new rules.
Companies need to consider how the new revenue recognition will affect other departments than the Finance department, including possible changes to the way that goods and services are sold, and the way in which sales staff and other employees are remunerated.
Enhancements to your various software applications may be required in order to support any process changes that you need to make in light of the new regulations.
A QAD Solution to the New Revenue Recognition Rules
For QAD customers, you are in luck — QAD Services can conduct a Revenue Recognition Q-Scan assessment to help determine what process and software options makes the most sense given the level of impact the new regulations have on your business and the version of the software you are currently running. Depending on your software version, the QAD Revenue Recognition module is suggested.
If you’re not a QAD customer, that’s okay! We’d love to talk to you about our world-class ERP software made specifically for manufacturing. Visit our website for more information.
ASC 606 & IFRS 15: Next Steps
Learn more about the current situation of revenue recognition, these new rules and how you can be prepared for the change. Download the white paper, Revenue Recognition: ASC 606 & IFRS 15 From A Manufacturer’s Perspective for more information.