As you know, new Revenue Recognition Standards for contracts with customers will begin in 2018 for public companies, and 2019 for privately held enterprises. If you are presenting comparative financials statements, the impact will come even sooner.
We strongly recommend our clients to start preparing now.
- Assign an implementation team. Involve us in the process.
- Analyze your contract terms to see what impact the new standards will have on your business, using the Five Step model.
- Involve accounting team, operations and sales management team in your analysis. Don’t assume there will be no impact.
- Look at this analysis as an excellent opportunity to document your key terms or rethink some of your key terms and renegotiate your contracts with customers, with more favorable terms to you.
- Determine the impact of the new standard on your EBITDA and loan covenants.
- Start conversations with your bank now to mitigate negative impact and any surprises.
We can help you every step of the way. We realize you might not have internal resources to deal with this issue. We are here to assist you and guide you through the process.