The New Revenue Recognition Standard - Are You Compliant?
The new Revenue Recognition and Commissions Accounting policies for Contracts with Customers has far-reaching implications for all businesses. Work must begin now to prepare for the 2017 implementation deadline.
The new standard jettisons the prior approach, requiring entities to amortize these costs based on when its goods or services were transferred to the buyer together with a notion of the “real” life of a customer relationship. Implications extend beyond core financial accounting systems to Contract Lifecycle Management systems and Incentive Compensation Management Systems.
In this white paper you will get:
- Background to the new rules and the task ahead
- Gaps in the current processes
- When to take contract acquisition costs – Implications
- Differing customer lifetime values – Implications
- Handling contract cancellations
- Value of rules-based contract management and commissions automation