ASC 606 Revenue Recognition Standards
"I've been on dozens of webinars and I've done a few myself and I think the vast majority of companies are underestimating the criticalness of 606 revenue recognition changes," says Neil MacDonald, Solutions Consultant at
Why companies are delaying changes
Companies aren't ready for ASC 606 because they seem to be unaware of when the new guidance goes into effect, or they think it doesn't apply to them, according to MacDonald.
"Unless you're in leasing, banking, and insurance, 606 applies to you if you have contracts with customers," he says. "The big changes are if something has to be deferred versus recognized upfront, companies have to make sure they're recognizing and/or deferring the correct amount."
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Written by Maria Louie