The new model will have accounting impacts including:
- Licenses and rights to use
- Options to renew
- Return rights
- Multiple performance obligations
It is clear that adoption of the new standard will impact people, policies, processes and systems. Management will need to perform a comprehensive review of existing contracts, business models, company practices, accounting policies, information technology systems, and internal processes and controls to assess the extent of changes needed as a result of the new standard. PwC can help as companies navigate this complex change. Resources are provided below to help you assess the impact on your organization, however feel free to contact our subject matter experts to have a more in depth conversation.