Revenue Recognition: It’s as Easy as Deprecating a Fixed Asset
ASC 606 is Here
The new standards for revenue recognition took effect for public companies on December 17th, 2017. Private companies have until December 17th, 2018. A surprising number of private companies who have until the end of 2018 are still not prepared and are scrambling to find a solution. It’s important for companies to start by recognizing the 5 steps of ASC 606:
- Identify the contract with a customer.
- Identify the performance obligations of that contract.
- Determine transaction price.
- Allocate transaction price to those performance obligations.
- Recognize revenue when those obligations have been satisfied.
These steps will get you started, but what else do you need to do? Rest easy, NetSuite has all your new revenue recognition problems covered. Check out this recent E-book from NetSuite for more information on the new Rev Rec rules:
Check out a copy of our on-demand Webinar: New Rev Rec Rules for Manufacturing Companies, where we discussed the impact and what companies can do to prepare for the new ASC 606 regulations
For more information on NetSuite, contact Keystone today!
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