Revenue Recognition Fundamentals

ASC Topic 606 / IFRS 15, Revenue from Contracts with Customers, has significantly impacted many companies upon adoption. A single 5-step model for all transactions and all industries! Whether you report under U.S. GAAP or IFRS, this 1-day course, provides you with the necessary information to gain a fundamental understanding of how and when revenue is to be recognized. Discussion-based scenarios and other group activities highlight significant challenges and application issues requiring consideration by companies applying the standard.

Topics Covered Include:

• Overview of the New Standard
  • Core principal and 5-step model
  • Scope
  • Effective dates
  • Industry impacts
• Walkthrough of the 5-step Model
  • Step 1: Identify the contract with a customer
  • Step 2: Identify the performance obligations in the contract
  • Step 3: Determine the transaction price
  • Step 4: Allocate the transaction price to the performance obligations in the contract
  • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
• Other Issues and Considerations
  • Contract modifications
  • Material rights
  • Principal vs. agent considerations
  • Contract costs
  • Licensing arrangements
  • And more...
• Disclosures
  • Learning from initial adopters
  • Disclosure requirements, including non-public entity elections