A New Revenue Recognition Standard

A New Revenue Recognition Standard

Are you prepared for the potential impact of ASC 606 on your business?

A New Era of Revenue Recognition

Today, companies must record revenue according to specific accounting standards, as well as industry-specific guidelines.  In order to address inconsistencies in these existing accounting standards, provide a more comprehensive revenue framework, and increase the usefulness of financial disclosures, a new revenue standard has been established.

While the new standard will streamline how companies record their revenue, it will require significant preparation for the varying impacts on business functions – from IT and Finance, to HR and Leadership – and perhaps even a shift in the business model. Organizations can opt to begin the transition in two different ways, but must be in full adherence by January 01, 2018 for public entities and 2019 for all other entities.

Navigate’s Approach

As with all company initiatives, Navigate’s approach to teaming with clients through this transition is based on a strategic framework and implementation plan that facilitates program success and sustainability.  We develop and integrate solutions to meet the unique needs of our clients with a focus on technology, process and, most importantly, change management.

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Our five-step process includes the following:

  • Identify and assess the impact across business functions
  • Develop and document future state process definitions, data/reporting, roles and enabling technology considerations
  • Determine the roadmap and resources required to address the challenges and gaps resulting from adopting the new standard
  • Coordinate and manage the project(s) execution
  • Establish governance for ongoing operations
  • Build and implement a change and communications plan

What you can expect from Navigate:

  • Functional assessments and future state design that address the impact of the new standard on data, technology, reporting and processes across business functions
  • Software selection or software optimization guidance to ensure your technology can support the new revenue standard requirements
  • Project management during adoption and implementation activities to meet mandated deadlines
  • Change management support for communications, training and sponsorship strategies to enhance adoption success
  • Process improvements across business functions that ensure investments are optimized, new standard requirements are met, and efficiency is maximized
  • Risk management activities to address transformational initiatives and/or portfolio of projects and programs

Throughout the project, the Navigate team will draw on the resources and breadth of its five main Service Areas:

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Change Management Done Right
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