ASC 606, the current Revenue Recognition Standard, has dramatically changed the way you, your company, and your clients recognize revenue by replacing existing US GAAP with a new core principle and a 5-Step Process. In this updated self-study webinar, you’ll gain an in-depth understanding of the revenue recognition standard and learn how to:
- Understand the scope of ASC 606
- Apply the 5 steps in ASC 606 to analyze revenue contracts
- Make necessary changes to your accounting, sales and contracting processes and internal controls
To help accountants and other financial professionals understand the latest accounting rules for Revenue Recognition. You’ll gain the confidence to comply with the core principles and 5-Step Process for recognizing revenue required by ASC 606. The course will also highlight differences with previous GAAP. Real-world examples and case studies will guide participants to practical solutions for their specific circumstances.
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Revenue from Contracts with Customers
– Problem areas
– Fraud detection and prevention
– Recognizing revenue - Scope of the Revenue Standard
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The 5-Step Revenue Model
– Contract modifications
– Applying series guidance
– Performance obligations
– Variable consideration constraint
– Allocation - Licenses
- Costs
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Adoption and Transition
– Implementing practical expedients
– Major differences between IFRS 15 and Topic 606 - Presentation and Disclosures
- TRG Issues
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Industry Issues
– Aerospace & defense
– Airlines
– Asset management
– Engineering & construction contractors
– Entertainment & media
– Gaming
– Health care
– Hospitality
– Software & hi-tech
– Telecommunications
• Recognize the concerns leading up to the creation of the new revenue recognition standard
• Recognize the objectives of the new revenue recognition standard
• Identify the standard’s impact on financial reporting for taxes
• Identify the steps within the revenue recognition model
• Recognize the new judgments that will have to be made under the standard
• Recognize the criterion for a contract under the standard
• Identify the characteristics of multiple contracts that should be combined
• Recognize the characteristics of a contract modification that should be accounted for as a separate contract
• Identify the characteristics of a separately identifiable performance obligation
• Identify the indicators of a transfer of control of underlying goods or services
• Identify the implications of revenue recognition on intellectual property licenses
• Identify the implications of revenue recognition on customer loyalty programs
• Recognize the proper treatment of nonrefundable up-front fees that do not relate to the transfer of a good or service
• Recognize the different forms of variable consideration
• Identify the accounting treatment of variable consideration under the standard
• Recognize the approach appropriate for estimating variable consideration
• Recognize the level at which the constraint on variable consideration should be applied
• Recognize the characteristics of optional purchases versus variable consideration
• Recognize the accounting treatment of noncash consideration received under the standard
• Identify whether a revenue contract contains a significant financing component
• Identify the practical expedient applicable to a significant financing component
• Identify the characteristics of a principal versus agent role in revenue recognition
• Identify the method for allocating transaction price to a performance obligation
• Recognize the accounting treatment of variable consideration in the standard
• Identify the characteristics of the transfer of control of a good or service
• Identify criteria distinguishing control transferred over time versus a point in time
• Identify the accounting treatment of inestimable customer returns
• Identify the accounting treatment of a bill-and-hold arrangement
• Identify the disclosure requirements of nonpublic entities relative to public entities