Last week, we kicked off Part 1 of our 4-part webinar series over “Everything You Need to Know to Prepare Your Business for the New Revenue Recognition Standard ASC 606,” with Ranga Bodla, Head of Industry Marketing at NetSuite and our guest speaker and thought leader on the topic, Mike Forman, NetSuite’s Corporate Controller.
The most surprising aspect that came out of the webinar was not the overwhelming number of attendees who attended but the results we received from our poll on how prepared businesses are for the change.
The first poll question we asked was about whether audience members were ready for 606. These were the results:
How Prepared are you for 606?
|
Answers |
Percentages |
|
Have not commenced preparation |
60% |
|
Established a project plan/project team |
27% |
|
Completed gap analysis |
7% |
|
Quantified impact |
3% |
|
System/process changes implemented |
1% |
|
Completed adoption process/Early adopted |
1% |
|
Clearly finance teams are just getting started and as discussed, its important to get started as soon as possible as deadlines are fast approaching. The second question that was asked was about the transition method that firms are planning on: |
|
|
What Transition Method do you Expect to Adopt? |
|
|
Answers |
Percentages |
|
Full retrospective method |
14% |
|
Retrospective method with practical expedients |
12% |
|
Cumulative effect method |
26% |
|
Undecided |
47% |
Consistent with the fact that most firms haven’t even commenced preparation, most companies still remain undecided. The good news is that with a technology partner like NetSuite, companies can choose any of these different transition methods and be fine.
For more best practices on the transition to ASC 606, download “Preparing for the New Rev Rec Standard with NetSuite”(opens in new tab) and register for the second webinar in the series “See Through the Lens of an Auditor on the New Rev Rec Standard.(opens in new tab)”