With the upcoming standard change (ASC 606) deadline for non-public companies approaching in January 2019, private companies should start determining their next steps now. This new standard could be a challenge as it removes familiar industry-specific practices and requires more management judgment due to more principles-based concepts.
Read through the various considerations private companies should take regarding the adoption of ASC 606 and why companies need to start thinking about implementation of the new standard and the methods of adoption available. It also includes a helpful matrix of the extended ASC disclosure requirements, along with the nonpublic elections.
The new accounting guidance sets out a five-step approach to revenue recognition that does not neatly align to the current risks and rewards model. Current GAAP prescribes specific steps that, when met, indicate revenue should be recognized.
Private Company Services, Revenue Recognition Partner Champion, PwC US