Given the hullabaloo over the new lease accounting and rev rec guidance, it only makes sense to take a step back, get a lay of the land, and see how companies are doing on the compliance front, don’t you think? Embark certainly does. That’s why we’ve created a new infographic, How Did Rev Rec & Leases Implementations Go in 2018?, based on PWC’s end of year findings. It shines a spotlight on how companies are progressing, hopefully rattling a few cages while we’re at it. The compliance clock is ticking and, as our new infographic demonstrates, there’s still much work to be done.
As you’ll see in How Did Rev Rec & Leases Implementations Go in 2018?, compliance thus far is the very definition of a mixed bag. Non-public entities are faring better than public ones at this stage of implementation, leading us to believe that many public companies might have underestimated the time, resources, and effort needed to comply.
However, the survey results used for our infographic go much further than simple compliance progress, segmenting data into specific industries and providing far more granular insights, including:
- Tools that firms need to implement ASC 842 effectively
- Costs incurred during implementation
- Top challenges to a successful implementation
Rev rec compliance was even more alarming for both public and non-public entities. Although, once again, our infographic provides far greater insights, a quick snapshot of implementation progress should be more than enough to make most firms sit up straight and take notice.
- Nearly one-fifth of private companies have yet to begin implementation, a third are in the implementation phase, and 80% are halfway done
- Effective dates for almost 90% of public companies have passed, but only 77% have completed ASC 606 implementation
- Revenue complexity has proven to be an expensive, time-consuming hurdle that many public entities did not account for
While we aren’t members of the sky-is-falling crowd, our infographic, How Did Rev Rec & Leases Implementations Go in 2018?, is meant to fuel the fire in a company’s regulatory furnace. Hopefully, you’ve done your due diligence, are already ahead of schedule, and the rev rec and lease guidance finish lines are already within your view. However, if there’s been a few bumps in the road and a mild sense of panic is sweeping over your accounting department, your friendly neighborhood financial gurus at Embark are only a stone’s throw away to lend you our experience and insights.