Learn about the new professional standards from the FASB known as “Revenue Recognition” from the FASB’s “Big 3 Project” which represents significant changes in authoritative professional standards concerning revenue recognition, its 5 step core principles, and related revenue recognition topics. These topics represent “changes to changes” in revenue recognition. The subjects and core principles are explained, discussed, and illustrated for examples. Further, the Corona Virus Pandemic (COVID-19) has impacted revenue recognition and its effective dates for the accounting profession.
Publication Date: May 2022
Designed For
Professionals in public practice, industry, government, and education who deal with nonpublic entities and need a course in how to handle the major “FASB BIG 3” issue of Revenue Recognition (ASU 2014-09).
Topics Covered
- Revenue Recognition Insights
- Step 1. Contract???
- Step 2. Performance Obligations???
- Step 3. Transaction Price???
- Step 4. Allocate the Transaction Price!!!
- Step 5. Recognize Revenue
- How will the new standard change current GAAP?
- Disclosures
- Changes to the Changes
- Private Compnay Council (PCC)
- Proposed Accounting Standards Update
- Auditing Considerations
Learning Objectives
- Describe Accounting standard ASU 2014-09 for Revenue Recognition
- Identify related accounting standards in the US issued after ASU 2014-09
- Identify related issues and problems about Revenue Recogniton, including COVID-19
- Identify the year the FASB and IASB issued a joint accounting standard on revenue recognition to address concerns surrounding the inconsistencies and complexities in accounting for revenue transactions
- Identify the date beginning on or after in which the guidance in ASC Topic 606 was originally effective for annual reporting periods of public entities
- Identify the IFRS equivalent to ASC Topic 606
- Idenitfy the ASU that addressed the topic of identifying performance obligations and licensing subsequent to the initial release of the new revenue recognition standard
- Identify the SAS that enables auditors to appropriately address the complex scenarios arising from new accounting standards that include estimates
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Pat Patterson
Cecil Patterson, (Pat), CPA, MBA, is an award-winning, nationally recognized author, speaker, and discussion leader for continuing education courses and numerous state societies. He has experience at the local and national CPA-firm level and as an adjunct university professor.
Pat holds an MBA from the University of North Florida and is a CPA and owner of the firm of Cecil Patterson, CPA. His firm provides, accounting, tax preparation and tax planning services, wealth management services, and consulting for businesses and other professional firms.
Pat has served on the AICPA Council, the FICPA Council, and the FICPA Educational Foundation Board of Trustees.