TIMELINE TO DISCLOSURE

The time to start all of this was a while ago.  However we thought it could help us all get on the same page if you could visualize a timeline to revenue recognition.  

The time is now.  It’s not going away.

1. Project Plan

Get everybody onboard, identify process owners, include auditors, set deadlines.

2. Evaluate revenue

Review existing revenue streams and document how they are currently being accounted for. 

3. Apply new standard

Go through the 5 steps for each type of revenue.

4. Systems & controls

Determine if any control gaps exist under the new standard and if the current systems can accommodate the update.

5. Train & Test

Train your employees on the new processes and test the updated systems.

6. Controls Effective

To continue to obtain maximum control reliance from external auditors, new or revised controls need to be operating effectively throughout the entire year.  Otherwise more testing and more fees for your auditors.

A. SAB 74 Disclosure

At minimum, provide a qualitative assessment of the new standards impact on the company's financial statements. 

B. ASC606 Disclosure

February 2019: Provide full disclosure in accordance with the chosen adoption methodology.