clock, Revenue Recognition


Revenue recognition

Is your company ready? Don’t run out of time.

In January 2018, the new revenue recognition standard (Update No. 2014-09; ASC 606) takes effect. The standard has broad implications and may affect many parts of your organization: financial statements, business processes, taxes, and internal controls over financial reporting. It requires the collaborative efforts of multiple departments within the company, including financial reporting, IT, sales, tax, investor relations, human resources, and others. Read on to learn what your organization can do to get started now or to continue down your current path toward implementation.

Why is this important to your company?

Jointly issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board, the revenue recognition standard will supersede virtually all existing revenue recognition guidance in Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS). The intent of the new standard is to replace the existing guidance with a single industry-neutral revenue recognition model that will reduce complexity and increase financial statement comparability across companies and industries. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance.

Back to top

Download the PDF

How can Deloitte help?

Deloitte works closely with clients to help assess the impact of the new standard to the organization and support the business through the implementation phase, bringing the breadth and depth of experience required from functions such as accounting, data, process, technology, controls, tax, and financial reporting. We have the experience and capabilities to assist you on this journey.

The value we bring:

  • ASC606 assessment and implementation experience across industries
  • Deep revenue recognition knowledge
  • Efficient approach and tools
  • Globally-connected team
  • Multi-functional team that knows audit, finance, tax, technology implementation, and more
  • Strong vendor relationships

End-to-end services:

We have been advising our clients in their journey of adopting the new revenue recognition standard since its inception. We know your business has unique needs so our demonstrated approach includes assessment, detailed design, implementation, project management, change management, and more. Here is a snapshot of the breadth of services Deloitte can provide to help you along this journey:

Click on the image for enlarged version

Deloitte can leverage its relationships with leading technology vendors to discuss or help implement revenue recognition solutions for our clients.

No matter where you are in the process–assessment, implementation, or somewhere in between–we have the experience and capabilities to help.

Back to top

Get in touch
Email us directly at with any questions or to request a meeting with one of our revenue recognition specialists.

How do you get started on the journey?

Addressing some areas of the FASB revenue recognition standard may require longer lead-time particularly those related to revenue or billing systems where separation and/or allocation changes may be required, so companies should perform a preliminary analysis of the new requirements as soon as possible.

Effective first steps to consider as you begin to evaluate the implications of the new FASB standard may include:

  • Evaluating significant revenue streams and key contracts to identify the specific revenue recognition changes required and the specific business units where these changes may have the greatest impact
  • Addressing the longer lead-time areas where new calculation engines or revised allocation processes may be required
  • Establishing a granular project plan and roadmap to manage the effort across multiple business units and countries

For an in-depth review of Deloitte’s Roadmap, which includes our interpretation of the new standard, please visit our Roadmap series page or subscribe to receive Roadmap series publications via e-mail. Email us directly at with any questions or to request a meeting with one of our revenue recognition specialists.



Back to top

What are some potential considerations and challenges?

These changes may present complexity for companies in various industries. Examples of some of the challenges are:
  • Bundled goods and services
  • Transaction price calculations
  • Contract considerations (i.e., contract combinations and modifications)
  • Capitalization of costs to acquire customer contracts
  • Disclosures
  • Tax compliance and planning
Organizations may need to consider other project needs, including:
  • Implementation of updated or new systems, processes and controls, where required
  • Effective training and communication of new requirements
  • Effective program and resource management related to this effort

Back to top

Watch Bloomberg BNA interviews with Deloitte subject-matter leaders

Where can you learn more?

Recent articles:

Please visit for a more comprehensive collection of news and Deloitte publications related to the new revenue recognition standard, ASC 606-related guidance on revenue-generating activities, and guidance on the converged IFRS and GAAP standards.

Back to top

Get in touch

Bryan Anderson
Partner | Deloitte Risk and Financial Advisory
+1 212 436 4914
Twitter | LinkedIn


Michael Dziczkowski
Partner | Deloitte Risk and Financial Advisory
Deloitte & Touche LLP
+1 212 436 2813

Tom H. Fernandez
Managing Director 
Deloitte Tax LLP
+1 214 840 7398


Schaffer Hilton 
Deloitte Consulting LLP
+1 404 220 3226

Eric Knachel
Partner | Deloitte & Touche LLP
+1 203 761 3625


Alfred C. Popken
Partner | Deloitte & Touche LLP
+1 203 563 2695



Did you find this useful?