Originally posted on ey.com.
SaaS companies are staring down the 2018 deadline to implement the new Revenue Recognition Standard (ASC 606). According to the recently released EY Revenue Recognition Survey, 85% of CIOs believe the IT team is providing the support and skills needed to meet these standards, but only 60% of CFOs agree. Although this survey references public companies, we've seen that SaaS business are trending the same way. In our webinar earlier this year, we surveyed attendees on their preparedness to adapt to the new revenue recognition standard and 47% said they have not taken steps to identify how the new standard will affect their GAAP financials.