Published: 27 March 2019
ID: G00707415
Analyst(s): Finance Research Team
The new revenue recognition standard, ASC 606, markedly shifted how companies record and disclose revenue from contracts with customers. Learn the best practices corporate controllers developed as they adopted and applied the standard, as well as the ongoing challenges they face.
Introduction
Implementation Costs and Effects on Audit-Related Fees
A Costly Implementation for Tech Companies
Higher Audit and Consulting Fees
Best Practices for an Efficient Adoption
Early Draft Disclosure
Accounting-Managed Compliance Workstream
Centrally Tracked Contracts
Ongoing Challenges
Performance Obligations
Transaction Pricing
Internal Controls
Manual Processes
Conclusion
Recommended by the Authors
About This Research
Endnotes
©2020 Gartner, Inc. and/or its affiliates.
All rights reserved.
Gartner is a registered trademark of Gartner, Inc. and its affiliates.
This publication may not be reproduced or distributed in any form without Gartner’s prior written permission.
It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact.
While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information.
Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such.
Your access and use of this publication are governed by Gartner’s Usage Policy.
Gartner prides itself on its reputation for independence and objectivity.
Its research is produced independently by its research organization without input or influence from any third party.
For further information, see Guiding Principles on Independence and Objectivity.