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Lessons Learned Adopting the New Revenue Standards (ASC 606/IFRS15)

Eric Knachel, Partner, Professional Practice Group – Deloitte & Touche LLP

Rafael Beyer, Sr. Manager, Revenue Recognition – Workday

Tammy Cunha, Sr. Director, Compliance & Reporting, Revenue – JDA Software

Moderated by Compliance Week’s Editor in Chief, Bill Coffin

Sponsored by

Agenda for Today’s Webcast

2:00 p.m. Introduction

Bill Coffin, Editor in Chief, Compliance Week

2:05 p.m. Overview

Speakers:

• Eric Knachel, Partner, Professional Practice Group – Deloitte & Touche LLP

• Rafael Beyer, Sr. Manager, Revenue Recognition – Workday

• Tammy Cunha, Sr. Director, Compliance and Reporting, Revenue – JDA Software

2:35 p.m. Panel Discussion and Q&A

3:00 p.m. Closing

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This webcast will last for 60 minutes

Sponsored by

IntroductionThe Series, Schedule and Instructions

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Sponsored by

Panelists

4

Rafael Beyer

Sr. Manager,

Revenue Recognition

Workday

Tammy Cunha

Sr. Director, Compliance & Reporting, Revenue

JDA Software

Eric Knachel

Partner, Professional Practice Group

Deloitte & Touche LLP

Copyright © 2017 Deloitte Development LLC. All rights reserved.

36 USC 220506

• Transition Method

Full Retrospective

Modified Retrospective

• Overall Progress

SAB 74 Disclosures

• On-going challenges

Operational

Technical

ASC 606 Observations and Insights

ASC 606 Observations and Insights

• On-going challenges

Operational

• IT – System Requirements

• Legal – Contractual Terms

• HR – Compensation Arrangements

Technical

• Broad/ General – FASB/TRG

• Industry Specific – AICPA Working Groups

Copyright © 2017 Deloitte Development LLC. All rights reserved.

36 USC 220506

Workday Confidential

ASC 606 Adoption Insights

And Some Insights

Visibility into

Data is Critical

Reporting is Ever

More Important!

Single System

Makes it Easy!

Auditing

Capabilities are Key

Step 2: Compare

impacts

Step 1: Develop

scenarios

Contract 1

Original Contract

Contract 2 Contract 3

Alternate Contracts

Revenue Scenario Modeling

Workday Confidential

Step 3: Dual reporting

Old Standard

New Standard

Rev Rec 3Rev Rec 2Rev Rec 1

Seamless and Agile P&L Planning

Workday Confidential

Existing applications

• Transactions

• Schedule:

Deferred Revenue

Recurring Revenue

Renewal Revenue

Forecast Revenue

is unified with built-in

enterprise process, controls

and auditability.

Transaction Planning

Reporting

Actual Revenue

Copyright © 2016 JDA Software Group, Inc. Confidential

At JDA, we're fearless leaders. We're the

leading provider of end-to-end, integrated retail,

omni-channel and supply chain planning and

execution solutions for more than 4,000

customers worldwide. Our unique solutions

empower our clients to reduce costs, increase

profitability and improve collaboration so they can

deliver on their customer promises every time.

Using JDA, you can plan to deliver.

About JDA Software

Workday Confidential

Since its founding in 1985, JDA has

become the leading provider of end-to-

end supply chain planning and

execution solutions for more than 4,000

customers worldwide, including:

• 73 of the top 100 retailers

• 71 of the top 100 consumer goods

companies

• Another “go live” every 8 hours

$900M

IN REVENUE

4,500

EMPLOYEES

28

CURRENCIES

40

COUNTRIES

Workday Revenue Key Capabilities

Billing and Revenue Recognition

Customer

Accounts and Collections

Contract Management

• Support for multiple revenue streams

• Integration with 3rd party contract-management systems

• Strong amendment controls

• Visibility into the full lifecycle of contracts

• Generate Invoices for various revenue streams – software,

hardware, billable professional services, subscriptions

• Allocate Revenue across multi-element arrangements

• Support for multi-element contracts with fair value amounts

• Support for evolving standards and regulations

• Customer Collections capabilities including collections

workbench, dunning, statements

• Self-Service customer portal for invoice presentment

• Automated payment matching capabilities

• Write-off and Dispute Management

Insights and Analytics

• Comprehensive Customer Profile

• Risk Score for Collections Management

• Extensive Deferred Revenue and Forecast Reporting

• Dashboards with key revenue, payments, and collections

analytics

Workday Confidential

JDA

Various Revenue Streams- Software, Subscription (SAAS/Time and

Usage Based), Cloud, Maintenance, Professional services,

Education and Hardware

Multi Element Arrangements (MEA)

Multi Currency Contracts

– Invoice in 30 countries with over 28 currencies

JDA Billing and Revenue

Workday Confidential

Billing and Revenue

• SalesForce->Apttus->JSIF->Workday

JDA Billing and Revenue

Workday Confidential

JDA New Revenue Recognition StandardHigh Level Timeline

Copyright © 2017 JDA Software Group, Inc. Confidential

You can submit questions using the “Ask a Question” button on the left side of your screen.

Panel Discussion

Speakers

Eric Knachel, Partner, Professional Practice Group – Deloitte & Touche LLP

Rafael Beyer, Sr. Manager, Revenue Recognition – Workday

Tammy Cunha, Sr. Director, Compliance and Reporting, Revenue – JDA Software

Moderator

Bill Coffin, Editor in Chief – Compliance Week

Sponsored by

Thank you for joining us

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presented at the conclusion of the webcast.

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