Sales Compensation Insight

This article will review the five steps of ASC 606 adoption, looking at how each can be impacted by entering into a long-term contract.

Step 3 in the new ASC 606 Implementation guidance is to “Determine the transaction price.” While this may be simple for many companies, it is difficult for others, especially when their contracts contain elements that could change depending on other interactions between your company and your customer.

Let’s look at a quick review of revenue recognition under ASC 606 then learn more about specific tax implications.

The new ASC 606 regulations introduced the concept of “performance obligations” within contracts that you need to identify and use as the triggers for recognizing your revenue.

ASC 606 has changed commission accounting. One of the biggest changes is how amortization estimates work. Based on the new principles that must be followed we put this guide together.

Below you’ll find a quick summary and outline. Then you'll find step-by-step instructions to help you learn how to implement the new ASC 606 accounting guidelines.

ASC 606, the new revenue recognition standard, requires an explanation in order to fully understand. If that’s what you want, you’re in the right place.