The ASC 606 clock is ticking: It may be time for brute force
Overview
The clock is ticking down toward the 2018/2019 effective date for the FASB and IASB’s new revenue recognition accounting standards (ASC 606 and IFRS 15). While the impact of the change is limited for some companies, others, such as those with complex business processes, are finding the impact to be significant. Many of those companies have decided to pursue an automated revenue management system, but with the deadline for adoption fast approaching, are finding that they can’t effectively implement their systems in the remaining time. In this situation, an interim “brute force” approach may be the only option.
Design for future sustainability
Taking a “brute force” approach to achieve compliance shouldn’t be considered a replacement for a sustainable long-term solution. Steps can be taken to structure the program such that the company is progressing to a more permanent automated system even while implementing a partially manual approach. In other words, take on a “brute force” approach while thinking through a plan that addresses compliance in a more sustainable manner.
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