We performed the full adoption of ASC Topic 606, “Revenue from Contracts with Customers,” for a medium-sized public company. Our role included the following elements:

  • evaluation of all revenue streams to determine the scope of contracts with customers
  • reassessment of gift card breakage calculation methodology
  • valuation of the liability related to the customers’ right to return and the corresponding contract asset  
  • analysis of future performance obligations stemming from a customer loyalty program

All considerations and conclusions were documented in auditable schedules, accompanied by a comprehensive memo. We also drafted new disclosures required by the standard and worked with management to assess the new key controls required for Sarbanes-Oxley (SOX) compliance. 

Note: This work was performed prior to joining Stout.