© 2014 Leeyo Software, Inc. All Rights Reserved. Confidential Information. ASC 606 Implementation Strategy November 4, 2014
Jul 16, 2015
© 2014 Leeyo Software, Inc. All Rights Reserved. Confidential Information.
ASC 606Implementation Strategy
November 4, 2014
Aleks is a Partner and Head of Connor Group
Technical Accounting Interpretations
(professional practice).
Aleks has extensive hands-on US GAAP and
IFRS experience advising clients and other
Connor professionals in multiple complex areas,
such as revenue recognition, including adoption
of new revenue rules (ASC 606), business
acquisitions and dispositions, capital markets
including IPO and cross-border transactions,
stock compensation, inventories, complex
financial instruments, SEC reporting and
regulations; and various complex or unique
transactions. Aleks has an in-depth knowledge of
issues affecting private and public companies in
technology, software, cloud, other services,
biotechnology and pharmaceutical industries.
Jason is a Partner at Connor Group and
leads the Financial Operations (FinOps)
practice.
Jason is an expert in helping clients drive
business transformation and improve
processes, systems, controls and
organizational changes. He works across
finance and business operations helping
clients define their business goals, assess
operational performance/needs and helping
plan and implement broad based process
improvement initiatives often focused around
revenue recognition and quote-to-
cash. Jason is focused on supporting private
and public technology companies including
hardware, semi-conductors, software, SaaS,
Internet, cleantech, and biotech.
Jason Pikoos
A PREMIER PROFESSIONAL SERVICES ADVISORY FIRM
Connor Group professionals deliver to our global clients Technical Accounting, IPO
support, Mergers and Acquisitions, and Financial Operations services from our bases
in New York, San Francisco, Silicon Valley and Salt Lake City.Thought Leaders Since 2006
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
2ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
3Today’s Landscape
Early stages of assessment
Extent of challenges, timeline and costs
Technical v. operational
ASC 606 interpretations
Automation
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
4ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
5
Executive sponsors, PMO, team, initial budget
Revenues and costs streams
Quote to cash, Cost, Close, etc. processes
ERP and other IT systems
Business imperatives
A:1. Scoping and Business Review
ASC 606
Key risks
Expected impact
Oppor-tunities
ASSESSMENT IMPLEMENTATION
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6
Distinct deliverables
Standalone selling prices
Pattern of delivery and recognition
Transaction price estimates
Commissions and other costs
A:2. Technical Assessment
Calculations
Memos
Business
Auditors
ASSESSMENT IMPLEMENTATION
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7
Operational & accounting processes and controls (SOX)
Systems – financial & operational
Operational & accounting policies
Financial reporting, forecasting & metrics
Business objectives and strategy
A:3. Operational Assessment
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
8A:4-5. Detailed Plan and Approval
Accounting
Legal
SalesDetailed plan, timeline, resources, budget
Adoption dates and transition methods
Transition vs. post-transition operations
Management, auditor, Audit Committee presentations
Transition to Implementation phase
Tax
FP&A
IT
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
9I:1-5. Implementation
Implement and configure IT systems and tools
Update forms, templates, data, reports, checklists
Policies, process and control changes
Communication, training, transition
Process transactions, journal entries, disclosures, audit
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
10Sample Implementation Timeline
Owner 1 2 3 4 5 6 7 8 9 10 11 12
Weekly update calls CG/Client
Phase I: Assessment
I.a: Scoping and Business Review John
I.b: Technical Accounting Adoption Assessment Dave
I.c: Operational Implementation Assessment Sarah
I.d: Implementation Plan Bill
I.e: Management Report and BOD Presentation Bill
Phase II: Implementation
Communication within the organization Becky
Implement systems and tools Dave
Design and configure items required to facilitiate rev rec Rhonda
Implement changes in processes and controls Harry
Implement desired changes in business (eg. sku's, etc) Spencer
Update forms, templates, spreadsheets, reports, etc Rhonda
User Training Ben
Identify specific arrangements as of adoption date Jeff
Enable dual reporting during transition period Heather
Gather & process data and prepare jv's Jen
Activity
Months
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
11ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
12Connor Group Services and Contacts
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
Premier professional services advisory firm
Technical Accounting, IPOs, M&A and Financial Operations
Assistance with over 100 IPO’s; over 75 acquisitions
300+ clients on 5 continents
Big 4 alumni and industry executives
Independent and without auditor restrictions
13Thought Leaders Since 2006
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
• Revenue recognition SAB 104, SOP 97-2, EITF 08-1, ASC 606
• IPOs/Capital markets S-1, IPO readiness, PMO, 10Q/K, cross border trx
• Audit readiness Close books, PBCs, tech. papers, audit mgmt
• Equity and debt Debt, pref stock, warrants, SFAS 123R, EPS
• Mergers/acquisitions Due diligence, pro-formas, purchase accounting,
integration
• Financial Operations Key process design (e.g., Close, Revenue, Global
Entities, etc.), internal controls, ERP support
14Connor Group Services
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
15
ASC 606 Thought Leadership Team
Aleks Zabreyko Technical Interpretations [email protected] 408-409-3422
Denis Kozhevnikov Technical Interpretations [email protected] 650-521-3099
Jason Pikoos Systems and Processes [email protected] 408-368-9710
Jeff Pickett Global Markets [email protected] 408-569-2291
Regional Leaders
Jim Neesen Silicon Valley [email protected] 650-291-2105
Connie Dias San Francisco [email protected] 510-381-2176
Laurie Marchand Salt Lake City [email protected] 408-391-7964
Melissa Nietzel New York City [email protected] 415-516-9300
Contact Information
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
Contact Leeyo Software
• (408) 988-5800
• http://www.Leeyo.com
• 2841 Junction Ave #201, San Jose, CA 95134
• Matt Ream, marketing: [email protected]
LeeyoSoftware@LeeyoSoftwareCompany/
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