Revenue recognition: Key insights for private equity investors
LIVE WEBCAST |
Join us on Feb. 27 for insights on how the new revenue recognition standard (ASC 606) may affect your portfolio investments.
The standard is complex and widely considered the most profound new compliance change to affect corporate finance since the Sarbanes-Oxley Act of 2002. It represents a major change in accounting and key financial metrics, including revenue, and earnings before interest, taxes, depreciation and amortization (EBITDA).
Portfolio companies will need to evaluate whether any changes are needed to their current revenue and financial reporting processes and systems. These changes may necessitate the involvement of staff beyond those involved in the accounting function. Under the new guidance, there will also be implications to mergers and acquisitions (M&A) transactions, both pre- and post-closing.
Preparing for and complying with the new standard may be more challenging than many private equity firms realize. However, adoption and implementation of the new standard also provides an opportunity to consider strategic operational issues such as improving efficiency, enhancing information systems, and strengthening processes and controls.
During the webcast, we’ll provide:
- A high-level overview of the new guidance, including key tax and accounting changes
- The industries most affected by the new standard
- Key dates and actions to consider for successful implementation
- Potential challenges associated with adopting the new standard
- The impact to M&A transactions