ASC 606 Implementation Strategy with Connor Group and Leeyo Software
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The document outlines the ASC 606 implementation strategy by Connor Group, detailing a structured approach to aid organizations in adapting to new revenue recognition standards. It highlights roles of key personnel, including experts in technical accounting and operational processes, and emphasizes the importance of assessment, planning, and implementation phases for successful transition. Connor Group offers a range of professional services, leveraging extensive experience across various industries to support clients with technical accounting, IPOs, M&A, and financial operations.
ASC 606 Implementation Strategy with Connor Group and Leeyo Software
- 1. ASC 606 Implementation Strategy November 4, 2014 © 2014 Leeyo Software, Inc. All Rights Reserved. Confidential Information.
- 2. A PREMIER PROFESSIONAL SERVICES ADVISORY FIRM Connor Group professionals deliver to our global clients Technical Accounting, IPO support, Mergers and Acquisitions, and Financial Operations services from our bases in New York, San Francisco, Silicon Thought Leaders Since 2006 Valley and Salt Lake City. Aleks is a Partner and Head of Connor Group Technical Accounting Interpretations (professional practice). Aleks has extensive hands-on US GAAP and IFRS experience advising clients and other Connor professionals in multiple complex areas, such as revenue recognition, including adoption of new revenue rules (ASC 606), business acquisitions and dispositions, capital markets including IPO and cross-border transactions, stock compensation, inventories, complex financial instruments, SEC reporting and regulations; and various complex or unique transactions. Aleks has an in-depth knowledge of issues affecting private and public companies in technology, software, cloud, other services, biotechnology and pharmaceutical industries. Jason is a Partner at Connor Group and leads the Financial Operations (FinOps) practice. Jason is an expert in helping clients drive business transformation and improve processes, systems, controls and organizational changes. He works across finance and business operations helping clients define their business goals, assess operational performance/needs and helping plan and implement broad based process improvement initiatives often focused around revenue recognition and quote-to-cash. Jason is focused on supporting private and public technology companies including hardware, semi-conductors, software, SaaS, Internet, cleantech, and biotech. Jason Pikoos
- 3. 2 ASC 606 Implementation Strategy © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 4. 3 Today’s Landscape Early stages of assessment Extent of challenges, timeline and costs Technical v. operational ASC 606 interpretations Automation ASSESSMENT IMPLEMENTATION © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 5. 4 ASC 606 Implementation Strategy © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 6. A:1. Scoping and Business Review © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com 5 Executive sponsors, PMO, team, initial budget Revenues and costs streams Quote to cash, Cost, Close, etc. processes ERP and other IT systems Business imperatives ASC 606 Key risks Expected impact Oppor-tunities ASSESSMENT IMPLEMENTATION
- 7. A:2. Technical Assessment © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com 6 Distinct deliverables Standalone selling prices Pattern of delivery and recognition Transaction price estimates Commissions and other costs Calculations Memos Business Auditors ASSESSMENT IMPLEMENTATION
- 8. A:3. Operational Assessment © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com 7 Operational & accounting processes and controls (SOX) Systems – financial & operational Operational & accounting policies Financial reporting, forecasting & metrics Business objectives and strategy ASSESSMENT IMPLEMENTATION
- 9. 8 A:4-5. Detailed Plan and Approval © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com Accounting Legal Sales Detailed plan, timeline, resources, budget Adoption dates and transition methods Transition vs. post-transition operations Management, auditor, Audit Committee presentations Transition to Implementation phase Tax FP&A IT ASSESSMENT IMPLEMENTATION
- 10. 9 I:1-5. Implementation Implement and configure IT systems and tools Update forms, templates, data, reports, checklists Policies, process and control changes Communication, training, transition Process transactions, journal entries, disclosures, audit ASSESSMENT IMPLEMENTATION © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 11. 10 Sample Implementation Timeline Owner 1 2 3 4 5 6 7 8 9 10 11 12 Activity Weekly update calls CG/Client Phase I: Assessment I.a: Scoping and Business Review John I.b: Technical Accounting Adoption Assessment Dave I.c: Operational Implementation Assessment Sarah I.d: Implementation Plan Bill I.e: Management Report and BOD Presentation Bill Phase II: Implementation Communication within the organization Becky Implement systems and tools Dave Design and configure items required to facilitiate rev rec Rhonda Implement changes in processes and controls Harry Implement desired changes in business (eg. sku's, etc) Spencer Update forms, templates, spreadsheets, reports, etc Rhonda User Training Ben Identify specific arrangements as of adoption date Jeff Enable dual reporting during transition period Heather Gather & process data and prepare jv's Jen © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com Months
- 12. 11 ASC 606 Implementation Strategy © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 13. 12 Connor Group Services and Contacts © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 14. 13 Thought Leaders Since 2006 Premier professional services advisory firm Technical Accounting, IPOs, M&A and Financial Operations Assistance with over 100 IPO’s; over 75 acquisitions 300+ clients on 5 continents Big 4 alumni and industry executives Independent and without auditor restrictions © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 15. 14 Connor Group Services • Revenue recognition SAB 104, SOP 97-2, EITF 08-1, ASC 606 • IPOs/Capital markets S-1, IPO readiness, PMO, 10Q/K, cross border trx • Audit readiness Close books, PBCs, tech. papers, audit mgmt • Equity and debt Debt, pref stock, warrants, SFAS 123R, EPS • Mergers/acquisitions Due diligence, pro-formas, purchase accounting, integration • Financial Operations Key process design (e.g., Close, Revenue, Global Entities, etc.), internal controls, ERP support © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
- 16. Contact Information © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com 15 ASC 606 Thought Leadership Team Aleks Zabreyko Technical Interpretations aleks.zabreyko@connorgp.com 408-409-3422 Denis Kozhevnikov Technical Interpretations denis.kozhevnikov@connorgp.com 650-521-3099 Jason Pikoos Systems and Processes jason.pikoos@connorgp.com 408-368-9710 Jeff Pickett Global Markets jeff@connorgp.com 408-569-2291 Regional Leaders Jim Neesen Silicon Valley jim.neesen@connorgp.com 650-291-2105 Connie Dias San Francisco connie.dias@connorgp.com 510-381-2176 Laurie Marchand Salt Lake City laurie.marchand@connorgp.com 408-391-7964 Melissa Nietzel New York City melissa.nietzel@connorgp.com 415-516-9300
- 17. Contact Leeyo Software • (408) 988-5800 • http://www.Leeyo.com • 2841 Junction Ave #201, San Jose, CA 95134 • Matt Ream, marketing: matt.ream@leeyo.com Company/ @LeeyoSoftware LeeyoSoftware Leeyo-Software © 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com