Depending on the nature of your business, ASC 606 and IFRS 15 may have a significant impact on your accounting practices. ASC 606, set by the Financial Accounting Standards Board (FASB) outlines a 5-step model to standardize accounting practices. The new policy is designed to increase cross-industry uniformity for financial statements. IFRS 15 is the international equivalent of this standard set by the International Accounting Standards Board (IASB). Whether you’re reporting in the US, internationally, or both, RightRev can help you calculate complex revenue recognition scenarios for compliance with the new ASC 606 revenue recognition standard.
Under ASC 606 and IFRS 15, you may be required to recalculate revenue when customers initiate a contract change. This can result from upgrades, down grades, add-on’s, partial cancellations, and more. You may need to re-allocate revenue across your performance obligations and apply the re-allocated amount prospectively or retrospectively. Don’t get caught trying to do ASC 606 revenue recognition manually or customizing your ERP to manage this complex scenario. Use RightRev to automate ASC 606 revenue recognition.
Standalone Selling Price (SSP) is the new way of determining appropriate “value” for each performance obligation (POB) for bundled contracts. It’s similar to determining VSOE for multiple-element arrangements under ASC 605, but not exactly the same. Calculating SSP, ensuring SSPs are mapped to appropriate POBs, and performing allocations across all bundled contracts leveraging SSPs can get complex very quickly. RightRev supports automation and compliance across this process with top of the line ASC 606 revenue recognition software.
Many companies, especially tech-based software, hardware, and service providers, change their business practices to maintain compliance with ASC 606. In turn, these changes can curtail growth if there isn't an automated solution.
RightRev enables teams to maintaining maximum compliance with the new standards using highly reliable revenue accounting compliance software. With our revenue recognition engine, you'll have confidence and accuracy in your month end reporting needs. Learn more today.