The new revenue recognition standards for contracts are ASC 606 for U.S. companies using the company’s generally accepted accounting standards (US – GAAP) and IFRS 15 for companies using IFRS (International Financial Reporting Standards). Robert D. Kugel, Ventana Research, breaks down the complications of accounting for selling costs under the new revenue standard in this highly anticipated Q&A.
In this paper, he focuses on:
- Challenges that accounting and compensation departments will face with accounting for sales commissions;
- How ERP and billing systems will struggle to handle the requirements of the new revenue standard;
- Sales Performance Management solutions and their role in managing commissions in regards to the new standards.