A new survey of top finance executives at U.S.-based companies released by 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 and was conducted in the fall of 2016.
The 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 at the end of 2017, but the influence of the new guidelines will impact companies much earlier, as any customer contract that extends beyond the start date will be affected.
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.