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New Revenue Recognition Reporting Requirements

The new revenue recognition standard (ASC 606) represents one of the most significant changes to generally accepted accounting principles (GAAP) in recent years. It affects all entities – public and private – that generate revenue from contracts with customers. Dacarba LLC, an Opportune LLP company, offers tailored and efficient implementation services that enable our clients to assess the impact of and comply with ASC 606.

Currently, GAAP revenue recognition standards vary by industry and may result in different accounting treatments for similar transactions across industries. The goal of principles-based accounting is to reduce the number of specific rules and, thus, may make the determination and consistency of accounting across industries more difficult.


In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) initiated a joint effort for recognizing revenue from contracts with customers. The guidance aims to improve revenue reporting by providing a framework for addressing issues, to improve comparability between industries and capital markets and to provide useful information for financial statements and disclosures.

  • Already effective for public companies and will be effective for private companies for annual periods beginning after Dec. 15, 2018 and interim reporting periods after Dec. 15, 2019.
  • Replaces nearly all revenue guidance in ASC 605, including industry-specific guidance
  • Recognition of revenue when control of goods or services transfers to the customer
  • Requires more robust qualitative and quantitative disclosures


The impact of ASC 606 will depend on the nature of your customer contracts; however, at a minimum, there is a documentation exercise to show your auditors that you have considered the impact of ASC 606 on your revenue streams. 


  • Scoping and sampling approaches;
  • Contract review and drafting of impact assessment memoranda;
  • ASC 606 education and training for key staff;
  • Drafting of revenue accounting policies and disclosures; and 
  • Evaluate systems and controls implications of ASC 606 and implement changes


  • Energy sector focus and dedicated ASC 606 subject matter specialists, including a former FASB staff member that served on the team leading the FASB revenue recognition efforts
  • Tried and tested implementation approach: Dacarba has completed numerous ASC 606 impact assessments for public and private companies in the energy sector with revenues ranging from $10 million to $34 billion. Our implementation for a Fortune 500 midstream company covered four segments, over 10 revenue streams and over 23,000 contracts
  • Customizable service offering from ad hoc technical support to full turnkey implementation
  • Have facilitated multiple revenue recognition roundtables to allow clients to share experiences and discuss common issues
  • Strong working relationships with the "Big 4" accounting firms and other national and regional audit firms
  • Process and Technology expertise to help address process and systems challenges arising from the standard

Contact one of our Complex Financial Reporting team members below or email us at We will initiate the introduction to our team to assess your requirements. 




Reid BrooksDirector

Reid is a Director in Opportune’s Complex Financial Reporting practice. Reid has over 10 years of experience with technical accounting providing clients across the energy sectors with technical research and SEC reporting assistance. Before joining Opportune, Reid held positions of increasing responsibly at ONEOK, Inc. in Tulsa, Oklahoma. Reid Brooks is a Certified Public Accountant (CPA) licensed in the state of Oklahoma and member of the American Institute of Certified Public Accountants.

Sandy DhariwalManager

Sandy Dhariwal is a Manager in Opportune’s Complex Financial Reporting practice. Sandy has over 12 years of experience gained across public accounting and industry in a wide range of technical accounting and reporting areas under both US GAAP and IFRS. Before joining Sandy was Senior Manager of Finance Projects for Vernalis PLC where she drove a wide range of finance and operational projects to establish a commercial infrastructure in the U.S. Previously, Sandy worked as Interim Controller at Vernalis plc and as an Audit Manager at PwC U.K. where she oversaw the audits of clients across a range of industries. Sandy received her BSC in Economics from the University of York, U.K.