It is time the enterprises planned for implementation of superseding Revenue Recognition Accounting standard IFRS 15 / ASC 606. Public companies have until January 1, 2018 to comply with the new standards. Click here for more Info on the Revenue Recognition standards.

Adapting to the new five-step model to recognize revenue from customer contracts involves analysis, process design and implementation effort. Your transactional and operational processes may have to undergo some change or may have to be entirely redesigned to address the requirements arising out of the new revenue recognition accounting standards. It is important to note that this will have potential impact on people, processes and systems in an organization.

Almost all entities in all type of industries like the following: “Automotive, engineering & construction, healthcare, telecommunications, retail, manufacturing, pharmaceuticals, technology, utilities etc” are affected to an extent by the new accounting standard.

For successful transition to the new standard, organizations will require the following three (1) Accounting Advisory services from audit firms (2) Add-on Package software like SAP RAR that SAP provides free of cost (Click here to learn more about SAP RAR) and (3) Consulting services for modeling the Revenue Recognition processes, Application Software configuration etc from System Integrators or from specialist consulting firms like Real Value IT Consulting LLC