Revenue recognition: Effectively managing accounting change

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

What constitutes a performance obligation?

The new revenue recognition standard takes effect for most companies in 2018, and the time to get ready is now. Companies are finding that circumstances such as tiered pricing, marketing offers (including volume discounts), contract modifications and a host of potential contract terms are creating issues that require careful consideration under the new standards.


Playback of this video is not currently available

PwC’s Michele Marino shares examples of applying ASC 606 guidance.


A phased approach to revenue recognition change

PwC suggests applying a phased approach to this transformation: assess the accounting impact; identify and implement system, process and control changes; and test the controls. You’ll need to consider program management, organizational change management, potential systems modifications and accounting oversight. PwC can advise and assist with the entire conversion process, and we have developed a suite of project enabling tools to help facilitate it. 


Contact us

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

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

Shane Foley
Principal, Advanced Risk and Compliance Analytics Solutions
Tel: +1 (646) 471 0516

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