ASC 606 Revenue Recognition: Identify Performance Obligations (Completed)

Date: Friday, October 30, 2020
Instructor: Lynn Fountain
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs

Identifying performance obligations requires having a detailed understanding of the contract, deliverables, promises and contract timing. It involves being able to distinguish between distinct and non-distinct goods and services to identify whether one or more performance obligations exist. This task involves significant judgment and requires specific considerations be applied to properly identify the performance obligations.

This course will delve into the concept of distinct and non-distinct goods and services as well as other aspects relating to performance obligations. This includes measuring progress over a period of time, identifying how to recognize revenue over a period of time, options to purchase additional goods and services, material rights, principal vs. agent status, warranties, up-front fees and stand ready fees. The course utilizes many examples from numerous industries to enhance learning of the various concepts.

Who Should Attend
Accountants and Finance professionals including CFO’s and Controllers, Internal auditors/Professionals considering the role of internal audit, and Legal and Compliance professionals Board Members.

Topics Covered

  • The concept of distinct and non-distinct goods and services
  • Other aspects relating to performance obligations
  • Measuring progress over a period of time
  • Identifying how to recognize revenue over a period of time
  • Options to purchase additional goods and services
  • Material rights
  • Principal vs. agent status
  • Warranties
  • Up-front fees and stand ready fees
  • Many examples from numerous industries to enhance learning of the various concepts

Learning Objectives

  • Identify the requirements behind step two of the revenue recognition standard "performance obligations"
  • Recognize the differences between distinct and non-distinct goods/services
  • Differentiate between distinct and non-distinct goods/services.
  • Identify how to measure progress over a period of time and how to recognize revenue over a period of time.
  • Identify the concept of revenue recognition related to performance obligations that may involve components
    • Options to purchase additional goods/services
    • Identifying material rights
    • Shipping and handling charges
    • Principal vs. agent status
    • Warranties
    • Options for additional goods and services
    • Non-refundable up-front fees
    • Stand-ready obligations
    • Rights of returns

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None

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