Are you ready for both EITF 08-1 and 09-3 amendments that are to be applied prospectively to new or materially modified revenue arrangements in fiscal years beginning on or after June 15, 2010. These are significant changes to Revenue Recognition.
Revenue Recognition
Answers
I was at a Proformative/Netsuite/Deloitte/Protiviti event on this subject last night and it was scary. For companies subject to the new reporting requirements, if you are not already well on your way to implementing a solution, I think you will be in big trouble. The amount of variability in how you regognize is now variable in far more ways than ever before and, as was noted many times by the great speakers, you can't do this in
BTW, I see that they created a Rev Rec group here and they posted the presos from last night. I highly recommend checking them out.
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I attended I believe that same seminar in East Palo Alto, CA., which prompted my question. I liked both presentations Joe Talley's, Partner Deloitte - EITF 08-1 and 09-3: Reporting Implications and Revenue Recognition Roadmap and Revenue Recognition: Beyond the Numbers presented by Steve Hobbs Managing Director Protiviti, for me they helped guide me through processes that are needed, necessary and in one case obviously worked.
If we look back on VSOE and TPE, we have always had a difficult time, ESP helps that process. Even though we have to use VSOE and TPE if we have them. I think that establishing ESP over the long haul will be more "user friendly". Quite frankly I like the idea of the demise of the excel spreadsheet.
Over the past 9 years my career has taken me down the Interim
You then have to reset everything and hope that you have done a good job and have taken into consideration all the previous calculations, allocations, etc.
The amendments are scary yes, future possibilities with software like, NetSuite, Intacct etc., all of our jobs in this area will be better for it. I believe these amendments will drive that uplift to better reporting and better
I believe that we will be able to catch up, if we get the right software to support the amendment requirements. Otherwise, I agree that this changeover, will take a considerable amount of time and manpower to accomplish.
https://www.proformative.com/og/revenue-recognition
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Thanks for posting the slides, they're very helpful.
EITF 08-1 will help to conform
The idea is to have the revenue reported in the financials more closely reflect economic and business reality.
Konrad
Does anyone have a process document for creating ESP values that their
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