Lexi Howe Fields

*🎬 Revenue Recognition: The Netflix Show You Didn’t Know You Were Starring In!* Welcome to IFRS 15 (Also ASC 606)—where recognizing revenue is like navigating through your Netflix binge-watch marathon. You’ve got to identify those performance obligations or risk a "cliffhanger" ending that leaves you with Financial Misstatements instead of credits rolling.🍿 Let’s set the scene: You’re selling cloud software—but HOLD ON, it's not just any software. This package comes with all the extras: ☁️ A software license 💻 Ongoing tech support 📚 Training (because, let’s face it, most of us skip the tutorials, right?) BUT—you can’t just bundle everything together and call it a day. That’s the accounting version of adding a movie to your watchlist, but expecting to instantly finish the whole series! 🎥🙅‍♂️ Each of these components (read as, performance obligations) needs to be separated and recognized at the right time, just like unbundling your Netflix subscription. 🎬 Here’s how it plays out: 1. Software license: Revenue recognized once the customer has the keys 🔑 to their cloud-based Netflix-style kingdom. 2. Tech support: Now this is a long-term relationship! Revenue trickles in like new episodes of your favourite Netflix show—released bit by bit over time. 📅 3. Training: Revenue is recognized when your customer finally knows the difference between "delete" and "delete forever" (just like figuring out how to delete that embarrassing show from your ‘Continue Watching’ list). 🙈 Why does this matter? Because if you don’t break these features down, your financials could end up as chaotic as a Netflix series finale that leaves too many unanswered questions! 😱 And let’s be real—no one wants an audit team demanding a ‘season 2’ to clean up that financial cliffhanger. 🎞️ So, when it comes to IFRS 15, remember: 👉 Identify your performance obligations like Netflix plans its seasons—each one unique and essential. 🗂️ 👉 Recognize revenue one episode at a time, rather than the entire season upfront, or your financials might turn into a never-ending series! 🔄 Master this, and you’ll be a revenue recognition 'hero'—without the cape, but with that glowing audit report shining like your 5-star Netflix rating. 🌟🍿 #IFRS15 #ASC606 #RevenueRecognition #FinancialReporting #Audit #Finance #IFRS #USGAAP #KNAV #KNAVUS

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To my accountant and auditor friends, Please consider taking this survey, to tell us how you currently, or expect to use GenAI (ChatGPT, Gemini, Copilot) in your auditing/accounting work. It will only take a few minutes. Please consider helping us in our research as we learn about the possibilities. https://lnkd.in/gefHZ3gF #auditor #accountant #genai #chatgpt

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Last chance to sign up for today's webinar! Great nonprofit-focused topics that include cybersecurity, the latest updates in accounting and tax, and everyone's favorite topic - revenue recognition! We will also have a Q&A where you can ask us your burning rev rec (or other) questions. And if none of that piques your interest, come for the free CPE!

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Excited about sustainability? Eide Bailly is hosting a webinar on November 13 that you won't want to miss! Find out how ESG principles are reshaping the business world and learn effective strategies for capturing and reporting data. Join us and be part of the change! #SustainableBusiness #ESG

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Students! Join me next Monday to learn more about the MS Accounting program in an information session at 1 PM. Hope to see you there!

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Interesting article on the accounting profession's role in ESG reporting from my UHY colleagues. This issue is about to heat up, as there are impending new ESG reporting requirements for the state of California and nationally. Companies should be preparing themselves for compliance with the new requirements.

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The AICPA and NASBA have launched a pilot program to ease the final 30 hours of CPA licensure education, now open to full-time employed graduates. Learn more via CPA Practice Advisor. https://bit.ly/4fZr6l8

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The professional services landscape is shifting and the accounting industry is at a crossroads. In this Accounting Today article, CFO Ryan Spohn advocates for a reevaluation of company models and value propositions in order to attract top talent and meet market demands. Read more here: https://lnkd.in/g_cC2j9k

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FASB has published an Accounting Standards Update (ASU) that improves financial reporting and responds to investor input by requiring public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. The ASU requires detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development) Download link : https://lnkd.in/gpW63dxk #fasb #sec #reporting #disclosures #ASU #incomestatement

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Did your audit partner pass their most recent AICPA Peer Review? This is something worth asking when prospecting #SOC2 audit firms. Does a “pass” mean they’re perfect? No. Like most things in life, there are no guarantees. You still need to vet them yourselves to make sure they’re technically competent and a good fit for your organization. However, failing a peer review, or simply not participating, should be a major 🚩 The AICPA’s Peer Review program is intended to establish minimum standards regarding the quality of the firm’s services. A bad, or non-existent, report should be concerning. You can search for firms and view their reports using the following link: https://lnkd.in/g2E7efSg

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Getting a #CPA can be daunting and can mean an extra year of college for young #accounting majors. Knowing this, Wipfli is participating in a pilot program, Experience, Learn & Earn (ELE), in which some of our interns can learn while they earn. Learn more in this IPA article.

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Getting a #CPA can be daunting and can mean an extra year of college for young #accounting majors. Knowing this, Wipfli is participating in a pilot program, Experience, Learn & Earn (ELE), in which some of our interns can learn while they earn. Learn more in this IPA article.

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Interesting strategy for attracting accounting talent on the horizon for one Big 4 firm...

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It’s exciting to share the early successes of the Experience, Learn, and Earn (ELE) program—an initiative developed by the AICPA and NASBA to support accounting graduates. Launched last summer, this pilot program is making strides in reshaping the pathway to CPA licensure. If you’re interested in learning more or participating in the ELE program, reach out or visit the AICPA website for more details. #Accounting #CPALicensure #AICPA #NASBA #ELEProgram

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