Perspective: Impact of ASC 606 and IFRS 15 on Sales Commissions Accounting

About impact of ASC 606 perspective

FASB and IASB, the two global financial regulators have recently updated their guidelines on revenue recognition in financial terms through ASC 606 in the US and IFRS 15, its international equivalent. The key change they have brought about is in the way an organization recognizes revenue and the corresponding expenses (including sales commissions) from a contract. This perspective document takes a look at disruption this change is going to bring.

What is included in this document?

With this change, Only when the customer is fully satisfied and various other conditions are met, can the sales commissions be expensed. So, what can you do to manage this change seamlessly? How do you track all those parameters that affect a sales person’s commission for the entire contract term, without overburdening you staff?

Fill this form to download