What comes after five?
After you've completed the five step process, there is still work to do, as systems and controls were not addressed.
Systems & Controls
Systems and controls work hand in hand to bring you into compliance and keep you in compliance. They also mitigate risks throughout your company, and an effective control environment can limit the fees of your external auditor.
More information about systems and controls
What you need now.
The SEC's expectation is that disclosure increases in explanation and specificity as the transition date approaches.
And if that doesn’t work…
If a registrant is unable to reasonably estimate the impact of adopting this standard, the registrant should consider the following additional qualitative disclosures in regards to the significance of the impact on its financial statements.
ADDITIONAL QUALITATIVE DISCLOSURESEFFECTSThe effect of any accounting policies resulting from the adoption of the new standard. DIFFERENCESHow the new policies differ from current ones. STATUSThe status of the implementation process and nature of any significant matters that have not yet been addressed. |
Your 2018 disclosure
After 2017 the real disclosures and changes come into play. Here’s what to expect.
ASC 606-10-50-1
The objective of ASC 606-10-50-1 is to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
AN ENTITY SHALL DISCLOSE:
CONTRACTS
Revenue recognized from contracts with customersJUDGEMENTS
The significant judgments, and changes in the judgments, made in applying the guidance in this topic to those contractsASSETS
Any assets recognized from the costs to obtain or fulfill a contract with a customer in accordance with ASC 606-10-50-1
