The new Revenue Recognition Standard (ASC 606) dramatically changes the way you, your company, or your clients, recognize revenue by replacing existing US GAAP with a new core principle and a 5-Step Process. In this hands-on self-study workshop, you’ll gain an in-depth understanding of the New Standard and learn how to make necessary changes to your:
- Key financial measures and ratios and IT systems
- Accounting, sales and contracting processes and internal controls
- COVID-19 response
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.
- Recognizing revenue under the 5-Step Model
- Comparing the New Standard with prior GAAP, including review of significant changes and problem areas
- Timeline, action plan, and implementing the transition process
- Costs to obtain a contract
- Principal vs. agent
- Collectability
- Licenses
- Contract modifications
- Combining and segmenting contracts
- Multiple deliverables
- Significant financing components and the time value of money
- Significant changes from prior GAAP, including bill and hold transactions, percentage of completion method, breakage and escheats, fixed fees, one-time fees, and gross vs. net
- Specific industry illustrations
- Understanding and complying with quantitative and qualitative disclosure requirements
- Retrospective vs. modified retrospective adoption—practical expedients and transition issues
- The latest deliberations of the Joint Transition Resource Group and FASB’s responses
- The impact of COVID-19
• Recognize the concerns leading up to the creation of the new revenue recognition standard
• Recognize the objectives of the new revenue recognition standard
• Recognize the implications of the new standard on disclosures
• Identify the scope of the new standard
• Identify the overall approach to revenue recognition under the standard
• Recognize the preliminary processes necessary to implement the standard
• Identify the areas of highest impact under the 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 vs. 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 vs. 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 vs. 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