So now you’re faced with the challenge of introducing new revenue recognition guidelines to your organization. You realize that changes to your ERP systems are required, but you may not be quite sure what the final rules and procedures will look like. And, in any case, it’s going to take some time to make the required system changes. Are you at a standstill?
Am I sure this will help? Yes. In fact, we’ve already helped many organizations successfully address a similar situation. In 2007, new revenue recognition rules set out by IFRS presented this exact challenge to many organizations (especially in Europe). Here’s what the head of Financial Reporting for a large book publisher said at the time about this transition, “…the group was able to quickly establish a unified chart of accounts in Oracle Hyperion Financial Management (HFM) covering UK GAAP, U.S. GAAP, and IFRS. It was then a simple matter to post the adjustments against these accounts as required.”
• Identify accounting contracts,
• Identify distinct performance obligations, and classify them as over-time or point-in-time,
• Allocate the transaction price to the performance obligations in your Oracle or non-Oracle ordering, fulfillment, receivable, and other relevant systems.
Part three: Who is affected?
Part four: What are the challenges for affected organizations?
Part five: What should I be doing?
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