ASC 606 is wreaking rev rec in biotech. Here's how one tech-savvy accountant aims to fix it.
Paul Giese is an accounting manager in the biotechnology industry and the founder of intheBlk software, a collection of web-based tools for biotech accountants.
Paul joins the podcast to talk about the massive change ASC 606 is having on revenue recognition in the biotechnology industry.
Under the previous guidance, research firms contracting with large pharmaceutical companies could typically straight-line revenue for a particular contract over the performance obligation period. Now they generally have to recognize revenue using the percentage of completion method. That can be very challenging when you’re estimating costs on day one five to ten years in the future for project outcomes with a high degree of uncertainty. The result is sometimes large, unpredictable revenue swings that nobody wants to see.
Listen to this episode to learn more about the challenges biotech accountants face when it comes to revenue recognition and the tool Paul is developing to help them manage this new complexity without adding headcount.
Subscribe:
