We’re beginning to see large U.S. public companies with December year ends completing implementation of the new revenue recognition standard. At the time of our Q2 progress update, many companies were still behind, despite the December deadline for companies who file on a calendar year basis.
Since then, the majority of large companies have provided significantly more details about how they are implementing ASC 606, and many described implementation efforts as “substantially complete”.
In this analysis, Audit Analytics looked at the ASC 606 implementation disclosure provided by the S&P 500 companies. (We will focus on Russell 3000 companies in another post.)
Key findings include:
- 90% of the companies evaluated disclosed the adoption method they are using, either the full retrospective or the modified method
- About one third of the companies provided some impact of the standard on financial statements
- More than two thirds of the companies described their implementation stage as “substantially complete”
- Even the companies that described their implementation efforts as “substantially complete” may still have some implementation issues that need to be addressed, such as the need to provide additional disclosure and impacts on controls and procedures
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