Back in 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) released new guidance on recognizing revenues in contracts with customers. Revenue recognition is essential for strong financial management and yet can be challenging for certain types of businesses, such as those managing recurring and deferred revenue.
As indicated in “Why Did The FASB Issue A New Standard On Revenue Recognition?,” posted on FASB.org, the proposal of new revenue recognition guidelines by the FASB and IASB were intended to clarify the reporting of financial statements that include the nature, timing, and uncertainty of revenue generated by certain types of contracts starting in 2018 for public companies and 2019 for private companies. This clarification was necessary since Generally Accepted Accounting Principles (GAAP) offer different revenue recognition requirements for specific transactions or industries, such as software and real estate. Essentially, these different industry sectors were using different types of reporting for similar transactions.
You can ensure your organization will be prepared to comply with the new standards with Intacct’s Revenue Management and Advanced Revenue Management modules.
How does Intacct Revenue Management help you meet new Revenue Recognition Standards?
- Manages complex revenue management requirements
- Handles the deferral and future amortization of sales and related costs
- Sets up multiple revenue recognition schedules with automation for future recognition
- Manages foreign currency transactions and calculate conversions
- Delivers robust reporting from multiple perspectives
- Forecasts revenues and renewals across different scenarios
By deploying the right technology, your company can increase control and insight over financial transactions and monitor revenues within current and future guidelines established by the FASB and the IASB. Armed with this information, your company decision makers will improve their ability to make the data-driven decisions that streamline operations, improve customer satisfaction, and foster business growth. Contact BTerrell Group for more information about using Intacct to streamline accounting practices and compliance with upcoming revenue recognition standards.
The new ASC 606 and IFRS 15 accounting standards—some of the most far-reaching changes to accounting since Sarbanes-Oxley—are only a few quarters away. Get ASC 606 Resources such as news, assets, and learn about the advantages Intacct provides in helping you address these changing rules with Intacct Contract Revenue Management and Contract and Subscription Billing.