COURSECA$397
Revenue Recognition Topic 606 – Step 5 Recognize Revenue
This segment is designed to evaluate Step Five of the new model dealing with recognizing revenue which is the final step in applying the new revenue recognition standard.
1.5 hours 4.6(9 ratings)
-55%
CA$180
About this course
The new revenue recognition standard outlines five steps for proper compliance. On the surface, these steps seem simplistic. However, there are many components that should be considered within each step based on your process and industry. Previous courses in this series have covered the standard at a high level and evaluated steps one through four of the standard. They are:
• Complying with the Revenue Recognition Standard
• Revenue Recognition: Considerations for Identifying the Contract - Part One and Part Two
• Revenue Recognition: Considerations for Performance Obligations – Part One and Part Two
• Revenue Recognition: Considerations for Transaction Price – Part One and Part Two
• Revenue Recognition: Allocate Transaction Price to Performance Obligations
This segment is designed to evaluate Step Five of the new model dealing with recognizing revenue which is the final step in applying the new revenue recognition standard. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. For performance obligations satisfied over time, an entity must decide how to appropriately measure the progress and completion of the performance obligation. A performance obligation is satisfied when or as control of the good or service is transferred to the customer. There are several issues companies should consider in applying step 5 of the standard:
• Determining if a Performance Obligation is satisfied over time
• Identifying indicators of transfer of control of goods/services
• Utilizing input and output methods to measure progress of revenue recognition
• Understanding stand-ready obligations and how to apply discounts.
Within this segment, we will cover the aspects of recognizing revenue.
Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.
Resources Consulted:
• ASC 606-10-32-15 to 32-20, 55-244 to 55-246.
• ASU 2014-09: “Revenue from Contracts with Customers.” BC229-BC247.
• Croner-I, “A14 Revenue from Contracts with Customers.” (2019). Section 7.4.2-2 and 7.4.2-2.
• FASB, ”Revenue Recognition Implementation Q&As.” January 2020). Questions 31-37.
• FASB TRG Memo 20: “Significant Financing Components.” 26 January 2015.
• FASB TRG Memo 30: “Significant Financing Components.” 30 March 2015.
• EY, Financial Reporting Developments: “Revenue from contracts with customers.”January 2020. Section 5.5.
• KPMG, Handbook: “Revenue Recognition.”December 2019. Section 5.5.
• PWC, “Revenue from contracts with customers”March 2020. Section 4.4.
• https://www.revenuehub.org/
Field of Study: Accounting
This course includes:
1.5 hours on-demand video
Beginner level
No preparation required
Published At Jul 14, 2022
Certificate of completion
No prerequisites
1 year access
Updated At Aug 8, 2024