Implementing the Revenue Recognition Model: Case Scenarios Part One

Author: Lynn Fountain

CPE Credit:  2 hours for CPAs

The new revenue recognition model, although simplistic in its presentation, can be difficult in actual implementation. Organizations must have a strong understanding of elements within each of the five steps that must be evaluated and considered prior to recognizing revenue. Entities applying the new Accounting Standards Codification (ASC) Topic 606: Revenue from Contracts with Customers must follow five steps to revenue recognition.

This course is designed for individuals who have an understanding of the five step process and who wish to “test their knowledge” through scenario analysis. This course is part one in a two part series. We will review concepts important to the step “Identify the Contract” and dealing with collectability issues, contract modifications and contract combinations. We will also evaluate step two Determine Performance Obligations and examine the concepts of distinct and separate as well as material rights.

Each learning objective listed utilizes multiple examples from various industries to help interpret and practice the concept. Participants will be able to review case facts and apply their knowledge of important aspects for each step to the specific scenario.

Publication Date: May 2019

Topics Covered

  • Five step revenue recognition model
  • Scope exceptions of Topic 606
  • Evaluate Step one "Identify the Contract"
  • Collectability issues
  • Contract modifications
  • Contract combinations
  • Evaluate Step two "Identify the Performance Obligations"
  • Proper identification of obligations
  • Proper Evaluating obligations that are distinct and separate
  • Proper Evaluating the concept of material rights.
  • Perform exercises to test your knowledge

Learning Objectives

  • Identify elements involved in the five step revenue recognition model and specific aspects important to step one and two
  • Recognize and apply methods for executing Step One "Identify the Contract" and determine how to utilize concepts
  • Recognize and apply methods for executing Step Two "Identify Performance Obligations" and determine how to utilize concepts
  • Describe scope exceptions of Topic 606

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $55

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