New accounting rules, ASC 606-Revenue from Contracts with Customers, will replace nearly all current guidance on revenue and apply to financial statements for the year ending December 31, 2019. Staffing companies have just a few months to make sure all their departments are gathering and recording financial data appropriately to execute the transition and comply with the new rules. WBL’s white paper provides guidance specific to the staffing industry and answers to the following questions (among others) to help your team as it prepares to implement ASC 606 – Revenue from Contracts with Customers:
- Does this transaction meet the new criteria of a contract?
- Are we able to estimate our ability to earn and collect incentive payments?
- Is our company a principal or an agent?
- How will timing of revenue recognition affect our commission and bonus compensation payments and the way they are recorded?
- Could new revenue recognition procedures affect the value of our company?
- Are we prepared to bring together various departments to gather the information needed for implementation and ongoing disclosures?