Author: Lynn Fountain
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
NASBA Field of Study
Auditing (2 hours)