On Jan. 1, 2018, ASC Topic 606, Revenue from Contracts with Customers, takes effect for publicly traded organizations, and all other companies must follow suit in 2019. Issued by the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) in May 2014, the standard aims to create a more comprehensive picture of revenue recognition—comparable across industries and across countries.
Financial institutions will need to carefully evaluate all services and contracts to determine whether Topic 606 applies.
This document is intended to be used as a reminder of ASC 606 requirements and other reporting considerations, but it is not intended to be a complete checklist. Rather, judgment will be required in order to consider specific circumstances regarding requirements for ASC 606 assessments. Any “no” responses should generally prompt additional consideration. Click here to view the checklist.
By Paul Bridge and Joe LaClair For additional details on how ASC 606 may apply to your organization, access our full Financial Institutions Reminder Checklist here. Warren Averett is an independent member of the BDO Alliance USA. This article was borrowed with permission from BDO USA, LLP