ASC 606 Revenue Recognition: Contracts with Customers (Completed)

In 2014, the Financial Accounting Standards Board (FASB) completed its Revenue Recognition project. It issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance establishes principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers. The standard affects all entities (public, private, and not-for-profit) that have contracts with customers.

Within this session we will provide an in-depth overview of the considerations for each of the five steps of complying with the revenue recognize standard which include:
1. Identify the Contract
2. Identify Performance Obligations within the Contract
3. Determine the Transaction Price
4. Allocate the Transaction Price to Performance Obligation
5. Recognize Revenue

In addition, with the onset of COVID-19 in 2020, there are many considerations that must be applied when evaluating each step of the standard. We will review some of those considerations within this course.

Who Should Attend
Accountants and Finance professionals, Auditors, Executive management/ Board members and Audit Committee members, and Legal and Compliance professionals.

Topics Covered

• Current economic environment and the impact of COVID-19 on the revenue recognition standard
• Revenue recognition core principles
• The five-step revenue model
• The accurate measurement of revenue that is recognized over time
• The revenue recognition areas that could be most susceptible to impact or change, due to the pandemic

Learning Objectives

• Identify the need for and effective dates for the new revenue recognition standard
• Recognize and apply the new revenue recognition core principles and the five-step revenue model
• Recognize and evaluate considerations for each step of the five step model:
  • Describe Step One: Identify the Contract and evaluate the impact of COVID-19
  • Describe Step Two: Determine Performance Obligations and evaluate the impact of COVID-19
  • Describe Step Three: Determine the Transaction Price and evaluate the impact of COVID-19 on step three
  • Describe Step Four: Allocate Transaction Price to Performance Obligations and evaluate the impact of COVID-19 on step four
• Recognize and examine some scenario situations related to COVID-19
• Identify a type of output method as it relates to performance obligations
• Identify acceptable methods for measuring progress towards completion

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None