Revenue Recognition Disclosure Requirements: Contracts with Customers (Completed)

Investors and other financial statement have provided comments to the SEC on revenue-related disclosures. They felt the standard did not provide sufficient detail to perform detailed analysis. One of the goals of the new standard is to introduce disclosure requirements that improve the information communicated in financial statements.

The new standard requires additional disclosures to better communicate the nature, amount, timing, and uncertainty of an entity’s revenue and cash flows (ASC 606-10-50-1). Filers are required to provide qualitative and quantitative information about the following:
• Contracts with customers
• Significant judgments made in applying the new standard
• Assets recognized from the costs to obtain or fulfill a contract

An entity is required to disclose revenue recognized from contracts with customers as well as impairment losses on any contract assets arising from those contracts. Disclosure is required unless these amounts are presented separately on its financial statements.

Who Should Attend
Anyone working with the revenue recognition standard including CEO’s, Boards, CFO’s, Financial and Accounting Personnel, Internal and External Auditors.

Topics Covered

• Disaggregation of revenue
• Contract balances
• Performance obligations
• Disclosure requirements for the standard

Learning Objectives

• Identify why more robust disclosure requirements are needed
• Recognize how to evaluate components of contract balances required to be disclosed
• Identify components of performance obligations required to be disclosed
• Recognize how to evaluate components of significant judgements that must be disclosed
• Recognize how evaluate components of transaction price that must be disclosed
• Describe assets recognized from costs to obtain or fulfill a contract that must be disclosed
• Identify how to discuss components that must be reported in interim reporting

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None