Revenue Recognition (ASC Topic 606): Overview

Learning Objectives

• To identify the effective dates for the new standard.
• To explore the need for the new standard.
• To discuss the new revenue recognition core principles and the five-step revenue model.
• To identify the impact of the new standard on various revenue concepts.
• To analyze the impact of the standard on various industries.

Course Description

On May 28, 2014, the FASB completed its Revenue Recognition project. It issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance establishes principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers.

The standard affects all entities (public, private, and not-for-profit) that have contracts with customers.  Exclusions include:

• Leases accounted for under FASB ASC 840, Leases; 
• Insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance; 
• Most financial instruments and guarantees (other than product or service warranties).

Transaction and industry-specific revenue recognition guidance are eliminated. It is replaced with a principle-based approach for determining revenue recognition. The new standard requires significantly more disclosure than the previous GAAP.

This online CPE Accounting webinar is the beginning of a series on the new revenue recognition standard. The standard outlines five steps for proper compliance. On the surface, these steps seem simplistic.  However, many considerations should be considered within each step based on your process and industry.

This CPE course is designed to provide an overview of the technical guidance and outline the five steps involved in the revenue recognition model. We also explore some concepts to consider within each step and then evaluate some challenges that specific industries may have when complying with the standard. Future courses will further delve into each step and provide examples and scenarios that should be considered to properly apply the step.

Major topics included: 

• The effective dates for the new standard
• The need for the new standard
• The new revenue recognition core principles and the five-step revenue model
• The impact of the new standard on various revenue concepts
• The impact of the standard on various industries

Here are links to your interest: Approved CPE courses on GAAP |  Certificate Course on Financial Reporting Analysis

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

Overview

• Effective Dates

  6 mins
• Five step model

  17 mins
• Identify the contract

  29 mins
• Transaction price

  55 mins
• Industry impact

  75 mins