It's easy to tell when the pressure is mounting around any public event and the deadline for IFRS 15 (ASC 606 in the US) is no different. More people show interest, words like "deadline" and "countdown" are thrown around and the experts start producing lots of valuable content.
So while we at Aptitude Software are producing our own revenue recognition content such as webinars we regularly publish, we're also following what's being published by our peers and advisors.
The latest piece to catch our eye is a short infographic published by EY which focuses on the upcoming deadline and the high level priorities for a revenue recognition project.
As well as providing interesting insight into the progress of companies around the world (1 in 9 are implementing, 4 in 9 are assessing the impact and another 4 in 9 are "stalled,") the infographic highlights some of the key considerations for implementation. Interestingly, of the 10 business impacts identified, 6 can be addressed directly through a packaged solution such as our Revenue Recognition Engine.
As well as highlighting these specific considerations, EY does an excellent job of very quickly showing the major factors which CFOs, controllers and finance teams need to bear in mind. Many companies have gotten off to a slow start, but with the approaching deadline and the dramatic impacts on annual revenue accounting, now is the time to act. Deciding which factors will result in the greatest impact to financial statements compared to the effort needed to address is a fundamental but highly valuable exercise in prioritization.
We would like to say thanks to EY for producing such a thought provoking piece and we hope it provides useful food for thought in the coming weeks. You can view the original infographic on the EY website by clicking on the image or here.
Read on about our Revenue Recognition Engine here.