Revenue Recognition (ASC Topic 606): Case Scenarios For Performance Obligations

Learning Objectives

• To explore requirements behind step two of the revenue recognition standard “performance obligations”.
• To identify differentiation between distinct and non-distinct goods/ services.
• To examine examples of both distinct and non-distinct goods/services.
• To identify performance obligations for multiple scenarios like Distinct goods/services, Non-distinct goods/services, Intellectual property, and Bundled goods/services.

Course Description

This CPE course is dedicated to Step Two of the revenue recognition model “Identify Performance Obligations”. Previous courses have outlined each of the individual five steps of the model and provided case examples. We have also developed two broad case study courses that cover scenario examples for each of the five steps.

To focus directly on aspects within each step, we are creating individual courses with multiple case scenarios that apply to the individual given steps. 

This CPE Accounting webinar applies to Step Two – Identify Performance Obligations and includes the many considerations companies must take into account when identifying how many performance obligations may exist.  

It will further review the concepts of distinct vs. non-distinct goods and services as well as goods and services that are distinct within the context of the contract. It will also cover the concept of a performance obligation representing a material offer and how that should be accounted for.  

Key Topics discussed in this course:

• Example of Performance obligations
• Example one multiple performance obligations
• Example Two distinct goods
• Non-Distinct Goods/Services
• Loyalty programs
• Exercise administrative costs

After taking this online CPE webinar by Lynn Fountain, you should be able to effectively apply your understanding of Step Two of the revenue recognition model to specific scenarios within your business. Each learning objective listed utilizes separate examples from various industries to help interpret and practice the concept.

Have a look at the Revenue Recognition Certificate Course, which we have on our website authored by Lynn Fountain.

Overview

• Example of Performance obligations

  13 mins
• Example one multiple performance obligations

  24 mins
• Example Two distinct goods

  29 mins
• Non-Distinct Goods/Services

  45 mins
• Loyalty programs

  56 mins
• Exercise administrative costs

  72 mins