Why You Should Care About the ASC 606 and ASC 842

170442564Let’s first start with the technical aspect. The ASC 606 and IFRS 15, also known as Revenue from Contracts with Customers, was issued jointly by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) in May 2014 as an Accounting Standards Update on revenue recognition. The ASC 842 and IFRS 16 is separate from the ASC 606 and IFRS 15, but will have an equally significant impact on companies. It will increase transparency by requiring recognition of lease assets and liabilities on balance sheets and disclosure of information related to leasing arrangements. These new standards address how and when revenue from long-term contracts, leases and exchanges will be recognized, and they will have a sizeable impact on the revenue recognition process moving forward.
So, what does this mean and why should hiring managers care?

While those details are probably gibberish to many of us, the new ruling affects a majority of companies, both public and private. Therefore, while the in-the-weeds details pertain mostly to accountants, recruiters need to prepare for and should capitalize on this change as they look to staff for accounting roles.

The below information is intended to educate recruiters and human resources professionals on the new standard in order to hire the best candidates to provide a smooth transition for their organization as these policies take effect.

What recruiters need to know about the ASC 606/ASC 842

What is it? The ASC 606/IFRS 15 is a newly approved revenue recognition standards update that will affect both public and non-public companies who enter contracts (these can be contracts for transfer of goods or services or things like insurance or lease contracts) with customers.

The ASC 842/IFRS 16 is newly approved guidance on the accounting for leases that will affect both public and non-public companies who enter into leases.

When does it take effect? For the ASC 606/IFRS 15, public organizations should apply the new revenue standard to annual reporting periods beginning after December 15, 2017. Nonpublic organizations should apply the new revenue standard to annual reporting periods beginning after December 15, 2018.

For the ASC 842/IFRS 16, most organizations – public business entities, non-profit entities with securities list on an exchange or OTC market, or employee benefit plans that file financial statements with the SEC – will be required to implement updates standards in fiscal years beginning after December 15, 2018.

PREMIUM CONTENT: 2016 U.S. GEOGRAPHIC OPPORTUNITY ATLAS

Who will be tasked with implementation? The positions that will be concerned with implementation of ASC 606/IFRS 15 include CFOs, Controllers, Assistant Controllers, and Directors/Managers of Reporting and Technical Accounting Policy. For ASC 842/IFRS 16 projects will include compiling and analyzing all lease agreements the company is involved in, so these will likely be contract positions. Few, if any, permanent roles will result from these rule changes.

And most importantly what does this mean from a staffing standpoint? There will be an increased demand for accounting and finance professionals capable of implementing these new standards due to the sheer number of companies affected by these changes. While the implementation date seems far off, companies will begin preparing for the changes now as they budget for new hires and/or contract workers. They’ll also need enough time to onboard candidates and get them familiar with the business. These jobs will be seen as critical new roles, so being knowledgeable on the ASC 606/ASC 842 will position recruiters to advise companies on the change and bring in the right employees.

When staffing for this new role, recruiters should focus on identifying individuals with a strong technical accounting background. They should also search for candidates who have extensive background in implementing new accounting or finance practices – such as someone with experience in conducting the reporting updates mandated by Sarbanes-Oxley. It’s necessary to have someone leading the charge who understands the changes that need to be made in revenue recognition and how to implement those efficiently. The candidate should also be able to work well under pressure, have strong communication skills, and be dedicated to the task at hand. They should be willing to go the extra mile to perfect the new standards and reduce the risk for added time, effort and of course, money, dedicated to implementing these new reporting standards. Recruiters who take the time to get fluent in what businesses need will be uniquely positioned to capitalize on this staffing opportunity.

Jay Houston

Jay Houston
Jay Houston is president of the finance & accounting practice at Addison Group.

Jay Houston

Share This Post

Tweet

Recent Articles

20 Responses to “Why You Should Care About the ASC 606 and ASC 842”

  1. … [Trackback]

    […] Read More here|Read More|Read More Infos here|There you can find 92648 additional Infos|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  2. iqs says:

    … [Trackback]

    […] Read More on|Read More|Read More Informations here|Here you will find 94911 additional Informations|Infos on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  3. … [Trackback]

    […] Find More here|Find More|Find More Infos here|There you can find 16796 more Infos|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  4. … [Trackback]

    […] Read More on|Read More|Read More Infos here|There you can find 10289 more Infos|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  5. payday loans says:

    … [Trackback]

    […] Read More on|Read More|Find More Informations here|Here you will find 82720 more Informations|Infos on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  6. … [Trackback]

    […] Find More here|Find More|Find More Infos here|Here you will find 56885 additional Infos|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  7. … [Trackback]

    […] Read More here|Read More|Find More Infos here|Here you can find 1575 additional Infos|Infos to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  8. … [Trackback]

    […] Read More on|Read More|Find More Infos here|Here you will find 33667 additional Infos|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  9. … [Trackback]

    […] Find More here|Find More|Find More Infos here|There you will find 65001 additional Infos|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  10. Mr. Checkout says:

    … [Trackback]

    […] Read More on|Read More|Read More Informations here|Here you will find 8461 additional Informations|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  11. … [Trackback]

    […] Read More here|Read More|Read More Informations here|There you can find 8392 additional Informations|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  12. … [Trackback]

    […] Read More here|Read More|Read More Infos here|There you will find 87564 more Infos|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  13. satta matka says:

    … [Trackback]

    […] Read More on|Read More|Find More Infos here|There you will find 65704 additional Infos|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  14. … [Trackback]

    […] Read More on|Read More|Read More Informations here|Here you will find 74266 more Informations|Informations on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  15. bet says:

    … [Trackback]

    […] Read More on|Read More|Find More Informations here|Here you can find 55622 more Informations|Infos on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  16. … [Trackback]

    […] Read More here|Read More|Read More Informations here|Here you can find 45780 additional Informations|Informations to that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  17. … [Trackback]

    […] Find More on|Find More|Find More Infos here|There you can find 97450 more Infos|Infos on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  18. … [Trackback]

    […] Read More here|Read More|Find More Infos here|There you can find 69559 additional Infos|Infos on that Topic: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  19. BDSM says:

    … [Trackback]

    […] Read More Infos here: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

  20. … [Trackback]

    […] Find More Informations here: thestaffingstream.com/2016/08/01/why-you-should-care-about-the-asc-606-and-asc-842/ […]

Powered by staffingindustry.com ·