Sunset Session Presented by Plante Moran

Key Considerations and Lessons Learned: Why PE Funds Need to Care About Revenue Recognition

One year into the implementation of the new revenue recognition standard, ASC 606, we have a comprehensive understanding of the challenges private equity and portfolio companies are facing. Even though the guidance has been out for a few years, with most nonpublic companies adopting as of January 1, 2019, PE funds need to make sure they are paying attention. If you don’t have a full understanding of the new standard, you might not recognize the real impact to your top line. With trend numbers no longer indicators of performance – do you know your real growth or decline?

With many complicated nuances, the standard has the potential to impact companies across all industries in areas including new investments, valuation model adjustments, and exit strategies. Through our engagements, we’ve learned what to watch out for and key considerations during adoption.

At the end of this Sunset Session, attendees will be able to:

• Utilize lessons learned as they evaluate their adoption.
• Identify the industries with high impact and common changes.
• Understand the key elements to watch out for during adoption.