Revenue recognition: Effectively managing accounting change

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

It's time for private companies to get started

With the deadline for the FASB standard change (ASC 606) for nonpublic companies approaching in January 2019, private companies should start determining their next steps now. In part one of a three-part series on considerations private companies should take in the adoption of ASC 606, read through 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. 

Explore: Revenue recognition for private companies.


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Phased approach

Implementing a phased approach

PwC suggests applying a phased approach to transitional changes (see diagram). You’ll need to consider program management, organizational change management, potential system modifications and/or implementation and accounting oversight. PwC can advise and assist with the entire conversion process, and we have developed a suite of project enabling tools to facilitate that process.

Revenue recognition status check: See how you compare

Many organizations are still working 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. 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 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 in some cases, the effective date may make it impractical to effectively implement systems in the remaining time before adoption. 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.


Contact us

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

Chad Kokenge
Partner, PwC Deals
Tel: +1 (973) 236 7609

Shane Foley
Tel: +1 (646) 471 0516

Robert Bishop
Consumer and Industrial Products & Services Finance Leader
Tel: +1 (312) 298 2037

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