Cost Accounting Under ASC 606
Your Questions Answered by SVP and Research Director of CFO and Business Research, Ventana Research
For most companies that do business using contracts, the ASC 606 standards make accounting processes more detailed and complicated. The new standards require that, for contracts that are in force for more than a year, these costs be capitalized (that is, not immediately expensed) and then amortized over the life of the customer relationship. All other costs of obtaining a contract are immediately expensed.
In the following guide, Ventana Research discusses important aspects of the ASC 606 guidelines, including:
- How companies can remain compliant under the IFRS guidelines
- Which compensation management systems can handle automating accounting processes accurately
- What is the ROI on sales compensation management software