ASC 606, can your contract review tool do this?

Spreadsheets, email, shared network drives…

…this is where most of our critical work starts! With the deadline to comply with the Revenue Recognition Standard now in our sights, many of your corporate accounting peers have met the harsh reality that these commonly used tools are not meeting their contract review needs. Disconnected spreadsheets do not keep their reviewers in-step with each other’s developments. They are habitually shared via insecure channels and we often find, even with the best of intensions and development, breakfreelists, formulas, and formatting within a spreadsheet can be compromised resulting in an unreliable tool. Aggregation of data for analysis and consolidation of conclusions for management review are nearly impossible feats with dozens (or, certainly, thousands) of manual spreadsheets.

For those of you who are relatively new to the policyIQ community, you might not have heard that policyIQ has been a constant in the RGP toolbox, serving to solve our clients’ problems for nearly 15 years.  We don’t make commission on software sales and are not incentivized to upsell you or to sell you a new tool or module. In fact, we work hard to make it possible to serve all areas of your business within one platform—we don’t have extra modules to sell you!

The flexibility of policyIQ to be easily customized for various initiatives has made it possible for our clients to hit the ground running in applying our web-based technology to their pressing Revenue Recognition needs.

A company may utilize policyIQ for the full contract cycle or simply as a contract repository, centralizing access and simplifying assignment of contracts to reviewers for ASC 606 analysis. In addition to guiding the reviewer through the 5 Steps outlined in ASC 606 required for each detailed review of contracts that are in scope, policyIQ also provides a place to document evidence of the reviewer’s considerations and tools to leverage that information for necessary analysis. Key conclusions from each step are automatically pulled out into a summary. Reviewers add final notes to the summary and systematically route all related content for review and approval, as desired and customized for each client.

piq_benefitsforrevrecThe ability to report on results of contract reviews in aggregate gives way to analyses not possible in spreadsheets. Look across all Performance Obligations by Revenue Stream, Geography, Business Division, Over Time vs Point in Time, Sales Channel, or Reviewer, for example. Reports also aid in the management of contract reviews—in the assessment phase and with ongoing reviews. Report on issues as they are being identified, assignment of contract reviews, progress of reviews, and impact of the standard on various divisions or revenue streams. Use reports to easily identify those contracts that warrant follow-up action.

plansforleasesWe delivered many new features in 2016 and some were developed specifically to sharpen the Revenue Recognition solution. We are wrapping up another release for spring and have an impressive road map that will go into development while the spring release is undergoing formal testing. And did you hear that upgrades are included free-of-charge?

We’re here to serve and grow with you.

Can you say that about your Revenue Recognition tool? Reach out to schedule a tour of policyIQ’s capabilities for ASC 606, compliance, audit, policy management or your other pressing information management needs!

New policyIQ Solution: Detailed Contract Review for Rev Rec

Is your project for bringing your company into compliance with the Revenue Recognition Standard underway?

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With the January 2018 effective date fast approaching, organizations (public, private, and non-profit) are pressed to come up with a plan to review each of their agreements, and for each one that is in scope, to work through each of these five steps:

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RGP’s Revenue Recognition subject matter experts (SME) have developed an approach that effectively addresses all steps of the complex standard. And, again, RGP has gone the extra distance to develop a technology solution that will help you to tackle this effort. Beyond the repository for contracts and the secure data room for document review and project management, policyIQ now has a solution to both simplify and standardize detailed contract reviews while providing oversight, progress reporting, visibility for management review, and evidence for external auditors.

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If you haven’t yet defined your approach for assessing your organization’s contracts and setting a course for compliance with ASC 606 by the deadline, don’t worry. We have a complete, cost effective solution and we’re ready to help you make up some ground. Contact us for more information.

RGP CPE Webcast – June 26th, 2013: Financial Reporting Update

Are you looking for the latest developments in financial and regulatory reporting?  Or do you want a greater understanding of what is coming down the financial accounting “pike”?  If so, join RGP on June 26th for a look at the FASB/IASB convergence projects on the FASB’s agenda.  Also planned are highlights of the most recent SEC and regulatory updates including the hot topic of conflict minerals.

Shauna Watson, RGP’s leader in the Finance and Accounting sector as the Global Managing Director, presents to you with a wealth of knowledge and subject-matter expertise on US GAAP, IFRS, SEC and PCAOB regulations.  She has worked in a variety of positions of increasing technical complexity, including Director of Finance and Accounting at Air Lease Corp. and Corporate Director of Technical Accounting and Policy at Northrop Grumman, where she evaluated and communicated the impact of new accounting standards, determined the accounting for complex business transactions and led the ongoing IFRS implementation efforts.

Click here to join this highly informative webcast.  Participation is free and open to all interested parties, and you are eligible to receive one (1) CPE for qualified participation.

FASB issues proposal for Impairment of Indefinite-Lived Intangible Assets

Earlier today, the FASB issued a proposal for impairment of indefinite-lived intangible assets (other than goodwill).  The proposal simplifies impairment testing for these assets by allowing entities to first assess qualitative factors in determining whether the fair value of the asset is less than the carrying amount.

rgp_logoThe Finance and Accounting practice at Resources Global Professionals has issued the following Financial Alert to help organizations get a handle on the proposed changes.  If you have questions or if you need assistance, contact us and we’ll put you in touch with your local Resources office.  At Resources, we provide strong technical accounting, project management, internal controls and information systems expertise and can help businesses with all aspects of financial reporting, including assessing the impact of this proposed accounting standards update on your business.


FASB ISSUES PROPOSAL FOR IMPAIRMENT OF INDEFINITE-LIVED INTANGIBLE ASSETS (SUBTOPIC 350-30: INTANGIBLES-GOODWILL AND OTHER-GENERAL INTANGIBLES OTHER THAN GOODWILL)

January 25, 2012, the Financial Accounting Standards Board (FASB) proposed changes to simplify current guidance for testing indefinite-lived intangible assets other than goodwill for impairment.

Background

In September 2011, the FASB issued ASU 2011-08 (Intangibles – Goodwill and other: testing for goodwill impairment) which simplified guidance for impairment testing of Goodwill. During the outreach process of developing the final standard, the FASB received input from many participants in regards to the recurring costs and complexity of performing impairment tests for indefinite-lived intangible assets other than goodwill.

Current impairment guidance for these types of assets requires that impairment testing take place at least annually, by comparing the fair value of the asset with its carrying amount. If the carrying amount exceeds the fair value, then an impairment loss is recognized.

Proposed changes

The Amendment proposes that an entity would have the option of first assessing the qualitative factors to determine whether it is more likely than not (presumed to be 50% or more likelihood) that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If, after consideration of qualitative factors, an entity determines that it is not more likely than not that the fair value of the asset is less than its carrying amount then the organization would not be required to take any further action. If the conclusion is the opposite, then the entity would be required to perform impairment testing of the indefinite-lived asset.

In addition, an entity may choose to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to calculate its fair value.

The amendments will not change how to measure an impairment loss and therefore, it is not expected to affect the information reported to users of financial statements.

Comments on the Exposure Draft are open until April 24, 2010.

Proposed effective date

The proposed amendments would be effective for annual and interim impairment tests performed for fiscal years beginning after June 15, 2012 with early adoption permitted.

Top 10 Finance and Accounting Issues for 2012 from Resources’ Expert

As we’re all aware, the FASB and the IASB have been focusing their efforts in the past several years on convergence activities to converge US GAAP with IFRS.  As we move into 2012, Resources Global Professional’s Colleen Cunningham, Global Managing Director of Accounting & Finance, highlights some of the biggest issues that she sees for the coming year, including…

  • Revenue recognition standards expected to be finalized;
  • Lease accounting standards to be finalized;
  • Conflict Minerals;
  • SEC decision on IFRS.

Check out Colleen’s Top 10 Finance and Accounting Issues for 2012 at her blog.

New FASB proposals on Financial Instruments and OCI Statement

rgp_logoResources Global Professionals’ Global Managing Director, Colleen Cunningham, explains new FASB proposals that:

a.) Could change the way companies report certain financial instrument tranasctions.

b.) Recommend combining the Income Statement with the Statement of Other Comprehesive Income (OCI).

Read her blog post for more information on the two new Exposure Drafts released for comment.