Revenue Recognition - Topic 606 Overview
Date: Tuesday, August 12, 2025
Instructor: Lynn Fountain
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs |
|
On May 28, 2014, the 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. Exclusions include:
• 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).
Transaction and industry specific revenue recognition guidance is eliminated. It is replaced with a principle based approach for determining revenue recognition. The new standard requires significantly more disclosure than previous GAAP.
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Who Should Attend
Who should attend (optional) Controllers, Accountants, Auditors, Finance and Operational Professionals Professionals
Topics Covered
- Topic 606 – Revenue recognition on contract with customers outlines five steps for proper compliance. At the surface, these steps seem simplistic. However, there are many considerations that should be considered within each step based on your process and industry
- Provide an overview of the technical guidance and outline the five steps involved in the revenue recognition model
- Explore some concepts to consider within each step and then evaluate some challenges that specific industry’s may have when complying with the standard
- Further delve into each step and provide example and scenarios that should be considered to properly apply the step
Learning Objectives
- Explore the need for the new standard
- Explore the new revenue recognition core principles and the five-step revenue model
- Identify the impact of the new standard on various revenue concepts
- Examine issues identified since the standard was implemented
- Explore the impact of the standard on various industries
- Evaluate required disclosures for the new standard
Level
Update
Instructional Method
Group: Internet-based
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of Revenue Recognition
Advance Preparation
None
