The deadline for implementation of  the highly anticipated Revenue from Contracts with Customers (ASC 606) is right around the corner! With an effective date of Jan. 1, 2018, for calendar year publicly held companies and Jan. 1, 2019, for calendar year privately held companies, the time to begin planning for implementation is now.

Under the new standard, revenue from contracts with customers is recognized based on the application of a principle-based five-step model:

Step 1: Identify the Contract
Step 2: Identify Separate Performance Obligations
Step 3: Determine Transaction Price
Step 4: Allocate Transaction Price to Each Performance Obligations
Step 5: Recognize Revenue When/As Performance Obligations Are Satisfied

ASC 606 Standard applies to all industries, with certain specific transactions excluding leases, insurance contracts, financial instruments, guarantees, and certain nonmonetary exchanges.

Warren Averett is ready to help businesses understand the new regulations and implement best practices in order to comply.