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Revenue is the key indicator of your company's fi nancial performance and health.
That's not news. What is news? The accounting rules you must follow to recognize
and report on that revenue are about to change. ASC 606 creates a major shift in
how your business handles its accounting—particularly if you have a subscription-
based business that derives revenue from contracts with customers.
What's the big deal? For starters, the impact of the change extends beyond a
mere tweak to your accounting methods. It necessitates changes to your tracking,
processes, and internal controls. The purpose of this guide is to highlight the basics
of ASC 606, what it means for your business, and the risks of not taking action.
For a more detailed overview of how to plan your path to compliance, be sure to
read Regulation Roulette: Part II: Six rules for ASC 606 readiness.
You might also hear about IFRS 15—the international standard
that has similar implications to the U.S. standard, ASC 606.
THE RULES
ARE CHANGING
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