ASC 606 becomes mandatory for all public companies at the end of 2017. A small number of S&P 500 companies reported their intent to adopt the new standard early; a bold move, considering that ASC 606 is by no means an easy standard to adopt. Only a handful of companies adopted the standard in Q1 2017. The table enclosed presents those S&P 500 companies that have already adopted the standard, along with the adoption method and the impact of the adoption on retained earnings.
In this article, Audit Analytics mostly focuses on the disclosure available in the revenue recognition and new accounting standard footnote of the annual and quarterly reports. The complex ASC 606 standard, however, will likely necessitate additional internal controls considerations.