A new survey of top finance executives at U.S.-based companies released by Sage Intacct, reveals that finance departments are behind in preparing to transition to new ASC 606 revenue recognition guidelines.
The survey included responses from 187 CFOs, VPs of Finance, or other top financial executives at SMBs and large organizations across a variety of industry segments.
The Sage Intacct ASC 606 Readiness Study found that 40 percent of finance professionals say that preparing for and implementing the new accounting standards will be a painful experience.
The ASC 606 guidelines issued by the Financial Accounting Standards Board (FASB) will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. The new accounting standard goes into effect starting on January 1, 2018 for public companies and December 15, 2018 for non public companies.
Despite the quickly approaching deadline, a majority of organizations (54 percent) have not even begun the assessment phase of their ASC 606 implementation.
A majority of the companies surveyed however, realize they will have to update their accounting software and implement new policies to accommodate the change. While the changes required by ASC 606 will be felt across the organization, it is clear that finance and IT departments will bear the heaviest burden.
The survey highlights are in this infographic, which you can download by clicking here.