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
Instructor
Lynn Fountain
Lynn Fountain has over 38 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Lynn has held two Chief Audit Executive (CAE) positions for international companies. In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees. The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.
Ms. Fountain is currently engaged in her own consulting and training practice. She is a highly sought-after trainer and international speaker. In addition, Ms. Fountain has assisted numerous companies with enterprise risk management frameworks, internal audit processes and financial accounting. She also serves as a discussion leader for the AICPA for numerous classes finance, accounting and risk management topics.
Ms. Fountain is the author of three separate technical books. Her first book released in 2015 by the Institute of Internal Auditors Foundation is entitled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. Her second book “Leading the Internal Audit Function” was released in October 2015 by Taylor & Francis Publications. This book serves as the initial launch for a series of leading practice internal audit and information technology publications. Her third book “Ethics and the Internal Auditor’s Dilemma” was released in December 2016.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials.