2021 Revenue Recognition: Issues and Problems (Completed)
Date: Thursday, February 25, 2021
Instructor: Pat Patterson
||12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
||2 hours for CPAs
The FASB issued Accounting Standards Update (ASU) No. 2014-09 in May 2014, Revenue from Contracts with Customers, Topic 606. After the release of ASU 2014-09 the FASB issued several amendments for further guidance and clarification.
• ASU No. 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date
• ASU No. 2016-08, Revenue from Contracts with Customers – Principal versus Agent Considerations (Reporting Revenue Gross Versus Net)
• ASU No. 2016-10, Revenue from Contracts with Customers) – Identifying Performance Obligations and Licensing
• ASU No. 2016-12, Revenue from Contracts with Customers– Narrow-Scope Improvements and Practical Expedients
Update 2017-13—Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update)
Update 2017-14—Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) (SEC Update)
Update 2020-05—Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities
The standard affects all entities (public, private, and not-for-profit) that have contracts with customers. However, there are some exceptions. For instance, leases accounted for under FASB ASC 840, Leases; insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance; most financial instruments, and guarantees (other than product or service warranties) are excluded. The new standards require significantly more disclosure than prior (GAAP).
ASC Topic 606 for revenue recognition provides principles that allow entities to use professional judgments necessary to recognize revenue as indicated by a transaction in a transaction that comes from a contract with a customer. This session discusses the revenue recognition issues that could be affected or changed, due to the Corona Virus pandemic.
Who Should Attend
Professionals in public practice, business, or other related positions that need the information for revenue recognition compliance.
- Current economic environment
- Impact on entities due to the revenue recognition issues
- Revenue recognition's core principles and the five-part models
- Revenue to be recognized over time
- Possible changes brought on or that may be brought on by COVID - 19
- Describe the current economic environment and the impact of COVID-19 on the revenue recognition standard
- Describe the five-step revenue recognition core principles
- Recognize and apply the new five-step revenue model
- Recognize the problems and solutions for applying the new revenue recognition standards
- Describe situations where COVID — 19 might have an impact
NASBA Field of Study
Accounting (2 hours)
A basic understanding of revenue recognition.