Revenue Recognition Consulting
Revenue Recognition Guidance
You Can Stand Behind
Contract Analysis and Performance Obligations
We analyze your contract structures, identify performance obligations, determine transaction prices, and document the revenue recognition conclusions your auditors will scrutinize.
Policy Development and Documentation
We draft clear, technically grounded revenue recognition policies that reflect your actual business model and satisfy US GAAP requirements under ASC 606.
Audit-Ready Technical Memos
Every revenue recognition engagement produces documentation structured the way Big 4 auditors expect -- reducing back-and-forth and keeping your audit on schedule.
100+
Successful transactions completed
20+
Years of experience
$5 - 50m
Average size of transaction
$20-200m
Average market cap of clients across tech, manufacturing & services
Revenue Recognition Advisory Under ASC 606
What makes us different?
Revenue recognition is one of the most scrutinized areas of financial reporting — and for good reason. The rules under ASC 606 require companies to apply a five-step model to every revenue-generating contract, and the judgments involved can be significant. How performance obligations are identified, when control transfers, whether variable consideration should be constrained, and how licenses and services are distinguished all affect the timing and amount of revenue recognized.
Corviniti provides revenue recognition consulting to companies that need a technically rigorous, clearly documented answer to how their revenue should be recognized. We analyze the specific contracts and business model, apply the ASC 606 framework, document the conclusions, and prepare the accounting policy disclosures. Our work reflects how the revenue is actually earned — not a generic application of the standard.
We work with SaaS companies, professional services firms, manufacturers, distributors, and other businesses across a range of revenue models. Whether you are implementing ASC 606 for the first time, reassessing an existing policy, or resolving a specific contract question ahead of an audit, we bring the technical depth and practical judgment the situation requires.
We help with:
- Five-Step Model Application: Apply the ASC 606 five-step model to your specific contracts — identifying the contract, performance obligations, transaction price, allocation, and recognition timing.
- Performance Obligation Identification: Analyze whether promised goods or services are distinct and should be accounted for as separate performance obligations.
- Variable Consideration Analysis: Assess the accounting for rebates, discounts, bonuses, penalties, and other variable elements, including whether the constraint on variable consideration applies.
- Principal vs. Agent Analysis: Determine whether your company is acting as principal or agent in arrangements involving third parties, which affects whether revenue is presented gross or net.
- License vs. Service Distinction: Analyze whether IP licenses are recognized at a point in time or over time, based on whether the license is distinct and provides a right to access or a right to use.
- Contract Modifications: Assess the accounting for contract modifications — whether they are treated as a new contract, a modification to the existing contract, or a combination.
- Accounting Policy Development: Draft the revenue recognition accounting policy that reflects your business model and satisfies ASC 606 disclosure requirements.
- Revenue Recognition Technical Memos: Prepare audit-ready technical memos documenting the revenue recognition conclusions for significant contracts or contract types.
- ASC 606 Implementation Support: Assist companies implementing ASC 606 for the first time, including transition method selection, cumulative adjustment calculation, and disclosure preparation.
- SEC Comment Letter Support: Help companies respond to SEC staff comments on revenue recognition disclosures in registration statements or periodic reports.
Why Choose Us?
Big 4 expertise,
boutique agility
Corviniti provides revenue recognition consulting with Big 4 technical depth and the responsiveness of a boutique. We deliver clear, well-reasoned conclusions that hold up under auditor and regulatory scrutiny.
Startups and US Capital Markets are our focus
From SaaS startups working through their first revenue recognition policy to established companies facing a specific contract question or SEC inquiry, Corviniti provides the technical expertise that revenue recognition consistently demands.
- Startup and Fundraising Focused (including Venture Capital)
- Built for Capital Markets (including IPO and SPAC transactions)
- Boutique Attention
- Big Four Experience
- Transaction Deadline Oriented
Contact Us To
Learn More
Call: (347) 472-1115
Email: info@corviniti.com
Tell us about your revenue model and the specific question or issue you are working through. We will respond within 24 hours.
Learn More From
Frequently Asked Questions
ASC 606 requires companies to recognize revenue using a five-step model: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations, and (5) recognize revenue when or as each performance obligation is satisfied. The model applies to all contracts with customers across industries, replacing the previous revenue recognition guidance under ASC 605.
For SaaS and subscription businesses, the key questions are whether the subscription arrangement includes multiple performance obligations (e.g., software access plus implementation services), how the transaction price is allocated among them, and whether each obligation is satisfied over time or at a point in time. Most SaaS subscriptions are recognized ratably over the subscription period. Implementation and professional services may be recognized separately, depending on whether they are distinct from the subscription.
Revenue is recognized over time when one of three criteria is met: the customer simultaneously receives and consumes the benefits as the entity performs, the entity’s performance creates or enhances an asset the customer controls, or the entity’s performance does not create an asset with an alternative use and the entity has an enforceable right to payment for performance to date. If none of these criteria are met, revenue is recognized at a point in time — typically when control of the good or service transfers to the customer.
Contracts with multiple deliverables require identifying whether each promised good or service is a separate performance obligation — which depends on whether it is both capable of being distinct on its own and distinct within the context of the contract. If multiple performance obligations exist, the transaction price must be allocated among them based on their relative standalone selling prices. We analyze the specific contract terms and business practices to reach a defensible conclusion.
A contract modification is a change in the scope or price of a contract. The accounting depends on the nature of the modification: if the modification adds distinct goods or services at their standalone selling price, it is treated as a separate contract. If it does not add distinct goods or services, it is treated as a termination of the existing contract and the creation of a new one (prospective treatment) or as a modification of the existing contract (cumulative catch-up treatment), depending on the circumstances.
ASC 606 requires extensive disclosures about revenue recognition, including: disaggregation of revenue, contract balances (contract assets and liabilities), remaining performance obligations, and the significant judgments made in applying the standard. Public companies must also disclose their accounting policies for recognizing revenue. We help prepare these disclosures as part of every revenue recognition engagement.
Yes. We regularly work with foreign private issuers and companies with cross-border structures, including IFRS reporting, US GAAP reconciliations, and multi-entity consolidations for companies with domestic and international subsidiaries.
In most cases, we can begin within a few days of finalizing our agreement. Our onboarding process is straightforward — a brief discovery session, a clear statement of work, and secure access setup. We do not have lengthy intake procedures that delay the start of actual work.
