The document outlines the ASC 606 implementation strategy by Connor Group, detailing a structured approach to aid organizations in adapting to new revenue recognition standards. It highlights roles of key personnel, including experts in technical accounting and operational processes, and emphasizes the importance of assessment, planning, and implementation phases for successful transition. Connor Group offers a range of professional services, leveraging extensive experience across various industries to support clients with technical accounting, IPOs, M&A, and financial operations.

1. ASC 606
Implementation Strategy
November 4, 2014
© 2014 Leeyo Software, Inc. All Rights Reserved. Confidential Information.

2. A PREMIER PROFESSIONAL SERVICES ADVISORY FIRM
Connor Group professionals deliver to our global clients Technical Accounting, IPO
support, Mergers and Acquisitions, and Financial Operations services from our bases
in New York, San Francisco, Silicon Thought Leaders Since 2006 Valley and Salt Lake City.
Aleks is a Partner and Head of Connor Group
Technical Accounting Interpretations
(professional practice).
Aleks has extensive hands-on US GAAP and
IFRS experience advising clients and other
Connor professionals in multiple complex areas,
such as revenue recognition, including adoption
of new revenue rules (ASC 606), business
acquisitions and dispositions, capital markets
including IPO and cross-border transactions,
stock compensation, inventories, complex
financial instruments, SEC reporting and
regulations; and various complex or unique
transactions. Aleks has an in-depth knowledge of
issues affecting private and public companies in
technology, software, cloud, other services,
biotechnology and pharmaceutical industries.
Jason is a Partner at Connor Group and
leads the Financial Operations (FinOps)
practice.
Jason is an expert in helping clients drive
business transformation and improve
processes, systems, controls and
organizational changes. He works across
finance and business operations helping
clients define their business goals, assess
operational performance/needs and helping
plan and implement broad based process
improvement initiatives often focused around
revenue recognition and quote-to-cash.
Jason is focused on supporting private
and public technology companies including
hardware, semi-conductors, software, SaaS,
Internet, cleantech, and biotech.
Jason Pikoos

3. 2 ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

4. 3 Today’s Landscape
 Early stages of assessment
 Extent of challenges, timeline and costs
 Technical v. operational
ASC 606 interpretations
 Automation
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

5. 4 ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

6. A:1. Scoping and Business Review
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
5
Executive sponsors, PMO,
team, initial budget
Revenues and costs streams
Quote to cash, Cost, Close, etc.
processes
ERP and other IT systems
Business imperatives
ASC 606
Key
risks
Expected
impact
Oppor-tunities
ASSESSMENT IMPLEMENTATION

7. A:2. Technical Assessment
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
6
Distinct deliverables
Standalone selling prices
Pattern of delivery and
recognition
Transaction price estimates
Commissions and other costs
Calculations
Memos
Business
Auditors
ASSESSMENT IMPLEMENTATION

8. A:3. Operational Assessment
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
7
Operational & accounting
processes and controls (SOX)
Systems – financial &
operational
Operational & accounting
policies
Financial reporting, forecasting
& metrics
Business objectives and
strategy
ASSESSMENT IMPLEMENTATION

9. 8 A:4-5. Detailed Plan and Approval
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
Accounting
Legal
Sales
Detailed plan, timeline,
resources, budget
Adoption dates and transition
methods
Transition vs. post-transition
operations
Management, auditor, Audit
Committee presentations
Transition to Implementation
phase
Tax
FP&A
IT
ASSESSMENT IMPLEMENTATION

10. 9 I:1-5. Implementation
Implement and configure IT
systems and tools
Update forms, templates, data,
reports, checklists
Policies, process and control
changes
Communication, training,
transition
Process transactions, journal
entries, disclosures, audit
ASSESSMENT IMPLEMENTATION
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

11. 10 Sample Implementation Timeline
Owner 1 2 3 4 5 6 7 8 9 10 11 12
Activity
Weekly update calls CG/Client
Phase I: Assessment
I.a: Scoping and Business Review John
I.b: Technical Accounting Adoption Assessment Dave
I.c: Operational Implementation Assessment Sarah
I.d: Implementation Plan Bill
I.e: Management Report and BOD Presentation Bill
Phase II: Implementation
Communication within the organization Becky
Implement systems and tools Dave
Design and configure items required to facilitiate rev rec Rhonda
Implement changes in processes and controls Harry
Implement desired changes in business (eg. sku's, etc) Spencer
Update forms, templates, spreadsheets, reports, etc Rhonda
User Training Ben
Identify specific arrangements as of adoption date Jeff
Enable dual reporting during transition period Heather
Gather & process data and prepare jv's Jen
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
Months

12. 11 ASC 606 Implementation Strategy
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

13. 12 Connor Group Services and Contacts
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

14. 13 Thought Leaders Since 2006
 Premier professional services advisory firm
 Technical Accounting, IPOs, M&A and Financial Operations
 Assistance with over 100 IPO’s; over 75 acquisitions
 300+ clients on 5 continents
 Big 4 alumni and industry executives
 Independent and without auditor restrictions
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

15. 14 Connor Group Services
• Revenue recognition SAB 104, SOP 97-2, EITF 08-1, ASC 606
• IPOs/Capital markets S-1, IPO readiness, PMO, 10Q/K, cross border trx
• Audit readiness Close books, PBCs, tech. papers, audit mgmt
• Equity and debt Debt, pref stock, warrants, SFAS 123R, EPS
• Mergers/acquisitions Due diligence, pro-formas, purchase accounting,
integration
• Financial Operations Key process design (e.g., Close, Revenue, Global
Entities, etc.), internal controls, ERP support
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com

16. Contact Information
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com
15
ASC 606 Thought Leadership Team
Aleks Zabreyko Technical Interpretations aleks.zabreyko@connorgp.com 408-409-3422
Denis Kozhevnikov Technical Interpretations denis.kozhevnikov@connorgp.com 650-521-3099
Jason Pikoos Systems and Processes jason.pikoos@connorgp.com 408-368-9710
Jeff Pickett Global Markets jeff@connorgp.com 408-569-2291
Regional Leaders
Jim Neesen Silicon Valley jim.neesen@connorgp.com 650-291-2105
Connie Dias San Francisco connie.dias@connorgp.com 510-381-2176
Laurie Marchand Salt Lake City laurie.marchand@connorgp.com 408-391-7964
Melissa Nietzel New York City melissa.nietzel@connorgp.com 415-516-9300

17. Contact Leeyo Software
• (408) 988-5800
• http://www.Leeyo.com
• 2841 Junction Ave #201, San Jose, CA 95134
• Matt Ream, marketing: matt.ream@leeyo.com
Company/ @LeeyoSoftware LeeyoSoftware
Leeyo-Software
© 2014 Connor Group | Palo Alto • San Francisco • New York • Salt Lake City | ConnorGp.com