Revenue (from Pixabay)
Note: To read Part 1 of Amalgam’s coverage of Microsoft’s ASC 606 adoption, please check how
Microsoft Early Adopts New ASC 606 Revenue Recognition Standard.
Recommended Audience: CFO, Chief Revenue Officers, CIOs, COOs, IT Finance, Sales Operations seeking to understand how ASC 606 revenue recognition changes will affect their responsibilities.
On August 3rd, 2017, Microsoft held an investor metrics conference call led by:
Chris Suh – GM, Investor Relations
Frank Brod, Chief Accounting Officer
John Seethoff, Deputy General Counsel and Corporate Secretary
This call was focused on
its implementation of new accounting standards, including ASC 606 for revenue recognition and ASC 842 for lease accounting.
There have been multiple acquisitions and announcements in the revenue recognition space as IT vendors ensure that they can support the ASC 606 standard including:
Continue reading “4 Key Executive ASC 606 Lessons Microsoft Is Teaching Us”
Apocalypse by Michael Lehenbauer on Flickr
Note: This topic is of key importance for CFOs using or considering a subscription-based business model and for CIOs tasked with aligning technology to revenue recognition. Part 2 of this topic is 4 Key Executive ASC 606 Lessons Microsoft is Teaching Us.
On July 20, 2017, Microsoft announced a
very successful Q4 FY17 where they announced both successful GAAP and non-GAAP results.
· Revenue was $23.3 billion GAAP, and $24.7 billion non-GAAP
· Operating income was $5.3 billion GAAP, and $7.0 billion non-GAAP
· Net income was $6.5 billion GAAP, and $7.7 billion non-GAAP
· Diluted earnings per share was $0.83 GAAP, and $0.98 non-GAAP
But the part that got my attention was a relatively minor 2 paragraph note near the bottom of the earnings announcement on
ASC 606 revenue recognition:
Continue reading “Microsoft “Early Adopts” New ASC 606 Revenue Recognition Standard”