Master Your Transition to ASC 606 and IFRS 15

2 Preferred Provider

BusinessSolutions

Topics

• ASC 606 summary and transition challenges– Changing guidelines– Effective dates

3 Preferred Provider

BusinessSolutions

ASC 606: The Most Significant Changes in Decades

…and pressing

The changes are sweeping…

Significant management judgment on accounting for revenue recognition will now be required, and the changes will have pervasive

impacts on people, policies, processes and systems.

- “New Rules Impact Financial Statements and Reporting,” PwC

”“

The time necessary to achieve a successful implementation should not be underestimated.

- James Schnurr, Staff Accountant, SEC

”“

4 Preferred Provider

BusinessSolutions

ASC 606 Summary

• Replaces all industry specific guidance• No more VSOE for software companies• 5 step principle-based process

Changing Guidelines:

• New rules increase amount of judgement• Need for systematic approach to performance

obligationsImpact on Internal Controls:

• Periods on or after December 15, 2017 (public) and 2018 (private)

• Applied retrospective or as cumulative catch upEffective Dates:

5 Preferred Provider

BusinessSolutions

ASC 606: Changing Guidelines

Accounting Similarities• Expense amortization• Revenue amortization• Revenue reallocation

Accounting Differences• No more recognizing revenue on

cash receipt• Focus on single customer contract• More frequent reallocation • More frequent expense deferral

All active contracts must be stated under existing recognition guidelines until transition, then under new guidelines after transition.

6 Preferred Provider

BusinessSolutions

2016 2017 2018 2019

ASC 606: Effective Date

12/15/2018private

Annual Periods

7 Preferred Provider

BusinessSolutions

2016 2017 2018 2019

ASC 606: Effective Date

12/15/2018private

Annual Periods

12/15/2017

public

8 Preferred Provider

BusinessSolutions

2016 2017 2018 2019

ASC 606: Effective Date

12/15/2018private

Annual Periods

12/15/2017

public

Subscription Term

9 Preferred Provider

BusinessSolutions

2016 2017 2018 2019

ASC 606: Effective Date

12/15/2018private

Annual Periods

12/15/2017

public

Subscription Term Dual Reporting (Public)

10 Preferred Provider

BusinessSolutions

ASC 606 for Subscription Companies - Challenges

Reallocations for contract changes

Regular deferral of expenses

No more revenue recognition on cash receipt

Impacts on forecasting

Dual reporting during transition

Are you READY?

11 Preferred Provider

BusinessSolutions

Coping Using Typical Measures Will Be Impossible

Revenue forecasting

Dual reporting during transition

Regular deferral of expenses

Reallocations for contract changes

12 Preferred Provider

BusinessSolutions

Coping Using Typical Measures Will Be Impossible

Billing

Accounting

Forecasting

Contract

Revenue forecasting

Dual reporting during transition

Regular deferral of expenses

Reallocations for contract changes

13 Preferred Provider

BusinessSolutions

Business growth

Coping Using Typical Measures Will Be Impossible

Billing

Accounting

Forecasting

Contract

Revenue forecasting

Dual reporting during transition

Regular deferral of expenses

Reallocations for contract changes

14 Preferred Provider

BusinessSolutions

Business growth

Coping Using Typical Measures Will Be Impossible

Billing

Accounting

Forecasting

Contract

Revenue forecasting

Dual reporting during transition

Regular deferral of expenses

Reallocations for contract changes

15 Preferred Provider

BusinessSolutions

INTACCT CONTRACT AND REVENUE MANAGEMENT

Automation and controls for your transition

to ASC 606

Intacct Contract and Revenue Management

Contract

Business growth

Revenue forecasting

Dual reporting during transition

Regular deferral of expenses

Reallocations for contract changes

16 Preferred Provider

BusinessSolutions

Deep Automation for ASC 606 Complexities

Dual TreatmentCurrent and new revenue recognition rules simultaneously

17 Preferred Provider

BusinessSolutions

Deep Automation for ASC 606 Complexities

Dual ReportingTo prepare TODAY for the upcoming changes

18 Preferred Provider

BusinessSolutions

Deep Automation for ASC 606 Complexities

Expense ManagementLink to specific line items or overall contract for amortization

19 Preferred Provider

BusinessSolutions

Demonstrate Controls for ASC 606

Contract-based ArchitectureOrganize performance obligations, drive billing and reporting

20 Preferred Provider

BusinessSolutions

Intacct: Only Seamless Solution to Complexity

ORDER

BILLCONSOLIDATE

REPORT

CPQ

EXPENSE RECOGNIZE

CustomerContract

21 Preferred Provider

BusinessSolutions

Reporting andAnalytics

SubscriptionBilling

ExpenseManagement

RevenueManagement

Intacct: Only Seamless Solution to Complexity

ORDER

BILLCONSOLIDATE

REPORT

CPQ

EXPENSE RECOGNIZE

CustomerContract

22 Preferred Provider

BusinessSolutions

Thrive in Subscription

EconomyReporting and

AnalyticsSubscription

Billing

ExpenseManagement

RevenueManagement

Intacct: Only Seamless Solution to Complexity

ORDER

BILLCONSOLIDATE

REPORT

CPQ

EXPENSE RECOGNIZE

CustomerContract

23 Preferred Provider

BusinessSolutions

Thrive in Subscription

Economy

Master Accounting Transition

Reporting andAnalytics

SubscriptionBilling

ExpenseManagement

RevenueManagement

Intacct: Only Seamless Solution to Complexity

ORDER

BILLCONSOLIDATE

REPORT

CPQ

EXPENSE RECOGNIZE

CustomerContract

24 Preferred Provider

BusinessSolutions

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Thank you!

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