Expertise to help you implement accounting standards and execute complex accounting projects
Accounting departments are typically organized to support regular business operations and periodic reporting. With detailed accounting standards from the FASB, GASB, and IASB plus SEC and IFRS reporting requirements, it is complex. When new standards are issued or your company has a strategic event, it can be difficult to thoroughly analyze the new accounting requirements and determine the changes to be made. Execution often requires policy, procedure, and system changes plus complex recalculations of financial records. It can seem overwhelming but it doesn’t have to be. Aventine Hill Partners is your resource for Technical Accounting expertise and consulting.
REVENUE RECOGNITION (ASU 2014-09 – TOPIC 606)
Has your company analyzed the impacts of the new standard for Revenue Recognition (ASC 606) that was issued in May 2014 and goes into effect after 2017? It guides when revenue is recognized which impacts your company’s reported earnings and even executive compensation payouts.
Accounting Standard Update 2014-09 is the first converged standard from both the FASB and IASB. It replaces decades of industry-focused revenue accounting rules with one principles-based standard and is effective January 1, 2018 for public companies and a year later for all others. Our Technical Accounting team has analyzed the ASC 606 standard and developed a methodology to help companies of any size in any industry assess the impacts and cost effectively implement the changes. Learn more about Revenue Recognition changes here.
LEASES (ASU 2016-02 – TOPIC 842)
A new standard issued in February 2016 will impact how leases are classified and accounted for. Operating leases which formerly were only reported as expenses will now also be listed on the balance sheet, impacting a company’s statement of financial position. These changes go into effect after 2018.
ASC 842 was intended to be a converged standard but the final result does have differences between GAAP and IFRS reporting. Companies will have to analyze how the differences impact their reporting. Most will also implement new processes and software to track the leases and accurately perform the capitalization calculations. Our Technical Accounting consultants are available to meet with your team now to assess the complexity of your lease population and the potential financial impacts. Learn more about the Lease Accounting standard here. Our Business and Technology consulting team can help with the selection and implementation of the lease accounting software. Read our Lease Accounting Software Buyers Guide here.
Acquisitions, divestitures, joint ventures, and bankruptcies create unique accounting and reporting challenges. Highly detailed analyses based on methodologies consistent with applicable accounting standards are required to restate or reallocate financial reporting items. Our team of C-level Advisors, Practice Directors, and Accounting and Finance consultants have been in leadership and technical roles at large and small companies in multiple industries. They are available on a consulting or interim basis to help your accounting department successfully record your most complex events.