Revenue Recognition (ASC Topic 606): Recognize Revenue

Learning Objectives

• To analyze step five: Recognize Revenue.
• To explain how to recognize revenue satisfied over some time.
• To identify criterion – simultaneous receipt and consumption, creation or enhancement of an asset controlled by the customer, and to recognize revenue over some time alternative use asset.
• To explore an alternative use asset example.
• To analyze how to recognize revenue over some time.
• To examine how to manage revenue satisfied at a point in time.
• To analyze how to measure the progress of performance obligations and properly recognize revenue.
• To identify restrictions and principles for measuring progress.

Course Description

The new revenue recognition 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.  

Previous CPE courses in this series have covered the standard at a high level and evaluated steps one and two of the standard. They are:

• Understanding the Revenue Recognition Standard
• Revenue Recognition: Considerations for Identify 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 CPE Accounting webinar 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 the progress of revenue recognition
• Understanding stand-ready obligations and how to apply discounts.

Within this online CPE course speaker, Lynn Fountain we will cover all the aspects of recognizing revenue. 

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

Overview

• Recognize Revenue

  5 mins
• Satisfied over time

  9 mins
• Criterion Three

  16 mins
• Example of Alternative use

  22 mins
• Satisfied at a point in time

  41 mins