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Topic 606: Revenue Recognition for Software and Technology (Part 2)

  • Accountant
  • CPA/ABV
  • CPA/CFF
  • CFE
  • CGFM
  • CIA
  • CMA
  • CPA (US)
  • CVA
  • CFA
  • IAP
  • QIAL
  • CIPM
  • CBA/MCBA
  • FPAC
  • CFIRS
  • CWS

Published: September, 2022

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  • Course Description
  • Course Qualification
  • Presenter
  • FAQ

Course Description

Overview

  • Non - Software deliverables in an arrangement containing more than incidental software
    8 mins
  • Factor two - PCS
    15 mins
  • Vendor hosted licensed software
    26 mins
  • UP front fee
    33 mins
  • Software excluded from scope of ASC 985-605
    41 mins

Course Description

This online webinar by Lynn Fountain is part two in a two-segment series that will deal with Revenue Recognition for Software and Technology companies.  It is designed to provide insight related to the new revenue recognition standard as it applies to software and technology processes.

In May 2014, FASB and IASB issued largely converged revenue recognition standards.  This new guidance replaces virtually all current revenue recognition guidance, including software revenue recognition guidance in ASC 985-605. The accounting change will be especially notable for software/technology companies and may require modification to systems, processes, controls, and documentation to meet the new requirements.

With the updated revenue recognition standards, recognition for software and technology is expected to continue to present challenges for financial statement preparers. Ways of doing business continue to evolve as do the views of the standard setters and regulators.  It is imperative that any company required to apply the software revenue recognition standards be thoroughly knowledgeable of the guidance.

Most companies in the software industry will be significantly affected. The level of modification to current revenue recognition practices will depend on the nature of the company’s revenues. Those companies with software license revenue will be the most affected.  There will be a lesser impact on the recognition of software-as-a-service (SaaS) revenue.

Software companies’ arrangements with customers often include multiple components wrapped into one contract. These could include:

  • Software licenses
  • Software-as-Services (SaaS)
  • Post-contract customer support (PCS) 
  • Other goods or services. 

The new guidance will change how software entities are recognizing revenue for these contracts in a few notable ways.

ASC 606 provides a more defined structure for assessing all revenue transactions and consists of five elements:

  • Identify the contract with a customer
  • Identify the performance obligations (promises) in the contract
  • Determine the transaction price
  • Allocate the transaction price to the performance obligations
  • Recognize the revenue when (or as) the reporting organization satisfies the performance obligations

Join this CPE Accounting course to get insight related to the new revenue recognition standard as it applies to software and technology processes.

Learning Objectives

  • To explain how to account for non-software deliverables in an arrangement containing more-than-incidental software.
  • To review the applicability of the guidance when licensed software is hosted by the vendor.
  • To analyze how up-front fees impact revenue recognition. 
  • To inspect how future discounts impact revenue recognition. 
  • To discuss if software components are excluded from the scope of the new guidance.

Recommended For

  • This online CPE webinar is recommended for CPAs, Accounting Professionals, Finance Professionals, and Entities who want to get insight related to the new revenue recognition standard as it applies to software and technology processes.

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Accounting Managers
  • Certified Public Accountant (CPA)
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Director of Accounting
  • Entrepreneurial Accountant
  • Senior Accountant
  • Staff of Accounting Firm
  • Young CPA

Course Qualification

Webinar Qualifies For

  • 1.5 General Credit of Accounting for Accountant/Bookkeeper/Tax Professionals
  • 1.5 CPD Credit of Financial Reporting for Accredited in Business Valuation (ABV)
  • 1.5 CPE Credit of Accounting for Certified Fraud Examiner (CFE)
  • 1.5 CPE Credit of Accounting for Certified Government Financial Manager (CGFM)
  • 1.5 CPE Credit of Financial Accounting for Certified Internal Auditors (CIA)
  • 1.5 CPE Credit of Financial Reporting for Certified Management Accountants (CMA)
  • 1.5 CPE Credit of Accounting for Certified Public Accountants (CPA-US)
  • 1.5 CPE Credit of Financial accounting for Certified Valuation Analyst (CVA)
  • 1.5 PL Credit of Accounting for Chartered Financial Analyst (CFA)
  • 1.5 CPE Credit of Accounting for Internal Audit Practitioner (IAP)
  • 1.5 CPE Credit of Accounting for Qualification in Internal Audit Leadership (QIAL)
  • 1.5 PL Credit of Accounting for Certificate In Investment Performance Measurement (CIPM)
  • 1.5 CPE Credit of Financial accounting for Certified Business Appraiser/Master Certified Business Appraiser (CBA/MCBA)
  • 1.5 CRE Credit of Financial accounting concepts for Certified Corporate FP&A Professional (FPAC)
  • 1.5 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
  • 1.5 CE Credit for Certified Wealth Strategist (CWS)
  • 1.5 CPD Credit of Financial Reporting for Certified Financial Forensics (CFF)

Additional details

  • Course Level :
    Basic
  • Credits :
    1.5
  • Instructional Method :
    QAS Self Study
  • Pre-requisites :
    None
  • Advance Preparation :
    None

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.

Presenter

About Presenter

Lynn Fountain, CRMA, CPA (US), CGMA, MBA

Owner, Lynn Fountain Consulting and Training

Lynn Fountain has over 39 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance.  Lynn has held two Chief Audit Executive (CAE) positions for international companies.   In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees.  The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.

Ms. Fountain is currently engaged in her own consulting and training practice.  She has successfully executed on several consulting assignments spanning areas of accounting, risk, ERM and internal audit.  She is a highly sought-after trainer and international speaker and has produced hundreds of courses delivered through seminars, conferences and on-demand training.  She is the author of three separate technical books. 

  • Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”.
  • Leading the Internal Audit Function
  • Ethics and the Internal Auditor’s Dilemma

Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials. 


About Company

Lynn Fountain Consulting and Training

www.lynnfountain.net/

Ms. Fountain has become known as an international trainer on topics of Leadership, Internal Audit, Accounting, Finance, Ethics, Business Processes, Bookkeeping, Cybersecurity and Business Issues.  She has over 150 training topics that can be tailored to meet your needs.

Faq

FAQs content

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Ratings and Review

4.5

2 Ratings

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JH

Jacob Harney, Accountant

Sep 22nd, 2022

Ease and convenience is fantastic.

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