https://www.revenuehub.org/article/asc-606-pir-what-it-is-and-why-it-matters
Abstract:
This article explains the Post-Implementation Review (PIR) of ASC 606, focusing on whether the standard achieved its intended goals and where challenges remain. It outlines the original objectives of ASC 606 — a unified approach to revenue recognition and improved comparability — and examines how companies have adapted since adoption. The piece highlights persistent areas of complexity, including identifying performance obligations, principal-versus-agent assessments, variable consideration, control, and non-standard contracts.
Why it Matters:
The PIR matters because revenue recognition is a judgment-heavy area that directly influences reported results, investor trust, and regulatory scrutiny. By spotlighting the most common challenges companies still face — including interpretation variability, contract complexity, and disclosure issues — the review helps standard-setters and practitioners understand where guidance or training may still be needed. The article reinforces that, even years after ASC 606 implementation, organizations must continue refining policies, systems, and documentation to ensure transparency and compliance. Ultimately, it underscores that improving revenue reporting is an ongoing effort, and lessons from the PIR will shape future best practices and standard-setting activity.
