Initially, insurance organizations thought ASC 606 would have minimal impact on the industry because insurance contracts accounted for under ASC 944 were out of scope. Insurance companies believed they could disregard the major change in accounting standards.
However, as companies and accounting specialists delved into the standard, they discovered that many insurance organizations have revenue streams that fall under the scope of ASC 606.
What does this mean?
Insurers should carefully review whether they are affected by ASC 606 with an advisor who understands their specific revenue streams and methods of accounting.
Tailored services to help you navigate the changes
You need help navigating through this complex accounting standard. Our insurance industry specialists understand the multiple revenue streams and various standards that apply to your accounting. We understand that not every organization needs assistance in every area of implementation and have flexible support options to fit your needs.
We can assist you in any of the following:
- Risk assessment: We will help you determine which of your revenue streams are affected.
- Impact assessment: We will help you understand the level of impact on your systems, processes, controls.
- Gap analysis: We will help you understand the gaps from where your systems, processes, and controls are today to where they need to be for successful ASC 606 implementation.
- Roadmap development: We will work with you to develop strategic options, determine which is the right path for your organization and develop your project plan for implementation.
- Implementation: We will assist your organization with project management and change management specific to your organization’s culture and needs.
- Internal controls evaluation: Once your implementation is complete, we will assist you in testing of your internal controls environment to determine if there are any weaknesses to be remediated.
- Tax accounting methods change: After implementation, our tax accounting methods specialists will evaluate your accounting methods to determine if an accounting methods change is needed for tax purposes.
- Technical support and co-sourcing: Our specialized professionals can help your organization in a technical support function or as a co-sourcing option to enhance your internal staff’s resources for the implementation.
- Training: Our specialists can provide your team with education on the standard and the nuances impacting your organization.
Talk with our ASC 606 specialists to understand the impact on your organization and the resources you need to effectively address revenue recognition now and in the future.