Revenue recognition: Effectively managing accounting change

Adapting to a new five-step model to recognize revenue from customer contracts

How should you plan for the impact of rev rec on tax? 

As companies analyze the impact of adopting the FASB's new revenue standard and the go-forward financial statement implications, they should also consider how each identified change will affect both revenue recognition for tax purposes and the accounting for income taxes. PwC has highlighted key areas in the tax provision that may be impacted by the standard and provides a discussion as to the underlying tax law that may drive these impacts.

Download: Tax considerations when adopting the new revenue standard.

loading-player

Playback of this video is not currently available

PwC’s revenue recognition specialists discuss implementing a revenue automation solution.

Where do you stand on the path to adoption? See how you compare

As the clock ticks down on the 2018 effective date, organizations are busy completing final preparations to implement the new revenue recognition standard. Where do you stand on the path to adoption? Take our poll and see how you compare.

After submitting your responses you’ll see how others responded to the same questions. Plus, you’ll get access to our interactive tool that shows how organizations in your industry and of a similar size responded to a range of other questions about their approach to adopting ASC 606.

Check back as we’ll be updating this poll over time to track other challenges, impacts and approaches to revenue recognition. You’ll be able to see timely updates to ongoing developments in the final stages of the implementation journey.


When implementing an interim, brute force approach, consider steps that will support future-state revenue automation.

Brute force may be needed to reach ASC 606 compliance

While the impact of the revenue recognition 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 to meet compliance by the deadline may be the only option. What are the steps and special considerations for taking this type of accelerated, manual approach?

Explore the PwC report: Taking a brute force approach to ASC 606 compliance.

Insights

Contact us

Joe Tort
Partner, US GAAP Change Services Leader
Tel: +1 (646) 471 0603
Email

Paul Sheward
Partner, Deals, U.S. Accounting Advisory Services Leader
Tel: +1 (312) 298 2232
Email

Shane Foley
Accounting and Finance Change and Analytics Solutions Leader
Tel: +1 (646) 471 0516
Email

Hal Houser
Principal, Consulting services
Tel: +1 (904) 366 3691
Email

Follow us