Revenue Recognition – Transition Methods

October 2, 2018


Now is the time. ASC 606 is effective for private entities on January 1st of next year. If you’re like many, you might feel behind. However, there is still time to catch up and minimize the chances of any disruptions or unwanted surprises. One of the first decisions you’ll have to make is what transition method you’ll choose. ASC 606 allows entities to make a choice between full retrospective and modified retrospective, commonly called the cumulative adjustment method.

Do not take this decision lightly because it can have a profound impact on a number of things including: comparability in the financial statements, what practical expedients are at your disposal, how much work it will take to adopt, disclosures, recognizing material rights and contract costs on historical contracts, and even permanently never reporting certain revenue.

Learning Objectives

Participants will be able to:

  • Describe the differences between the full retrospective and modified retrospective approaches;
  • List the practical expedients available;
  • Determine the transition disclosures that are required;
  • Assess what transition method is best for you.


  • Michael Hoose | Senior Manager, Audit Professional Practices | Cherry Bekaert LLP

CPE Accreditation

Prerequisites | None
Advanced Preparation
| None
Recommended Hours of CPE
| 1 Hour*
Delivery Method
| Webinar
Program Level 
| Basic
CPE Category
| Accounting