Revenue Recognition Disclosure Requirements: Contracts with Customers
Date: Friday, May 2, 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 |
|
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
Controllers, Accountants, Auditors, Tax Professionals
Topics Covered
- Disaggregation of revenue
- Contract balances
- Performance obligations
- Disclosure requirements for the standard
Learning Objectives
- Explore and examine why more robust disclosure requirements are needed
- Discover and evaluate components of contract balances required to be disclosed
- Explore components of performance obligations required to be disclosed
- Identify and evaluate components of significant judgements that must be disclosed
- Explore and evaluate components of transaction price that must be disclose
- Discover and evaluate assets recognized from costs to obtain or fulfill a contract that must be disclosed
- Discover and discuss components that must be reported in interim reporting
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Accounting (1 hour), Business Management & Organization (1 hour)
Program Prerequisites
Understanding of ASC Topic 606 – Contracts with Customers
Advance Preparation
None
