The new revenue standard: 5 things private companies need to know

Help for private companies―adoption of the new revenue standard is just around the corner. So that you’re ready, hear some of the challenges and lessons learned by public companies from their adoption efforts. In this week’s episode, we’re joined by PwC partner, CJ Finn, to take a look back at how public companies adopted ASC 606 and discuss 5 things private companies need to know, including:

• 0:46 - Effective date and transition elections. A quick refresher on the effective date for private companies and why some private companies have elected to adopt the standard early.
• 2:57 - Overview of the 5-step model. We recap the 5 step approach to revenue recognition and share lessons learned by public companies during their adoption of the new standard.
• 7:50 - Identification of the performance obligations. We highlight where special attention can help avoid mistakes.
• 11:17 - Estimating the transaction price. Insights into specific areas, such as variable consideration, that can take some time and require professional judgment.
• 16:51 - Disclosure considerations. Understanding what’s required for private companies and the possible sensitivities around what is being disclosed.

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About our guest

CJ Finn, PwC’s private company accounting change leader, has 16 years of experience working with public and private companies. He has advised large multinational clients on complex accounting areas, SEC reporting, system development, mergers and acquisitions, and purchase accounting and valuation.

About our host

Heather Horn is PwC's National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as periodic webcasts for the power and utilities industry. With over 25 years of experience, Heather's accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Chapters

• 0:46 Effective date and transition elections
• 2:57 Overview of the 5-step model
• 7:50 Identification of the performance obligations
• 11:17 Estimating the transaction price
• 16:51 Disclosure considerations