Description

This course provides a detailed overview of the key principles and requirements with respect to revenue recognition and leasing transactions. Both of these areas witnessed substantial changes made in years past by the FASB. This course takes a quick trip down memory lane to explore how both of these standards evolved, and then takes the user down a detailed path of understanding the key financial reporting requirements of each.

Chapter 1 provides an overview of the revenue recognition standard prescribed by ASC Topic 606. This includes a discussion of how the standard today evolved over time and why a change was needed. More importantly, this chapter walks through the 5-step process for revenue recognition and also provides information and requirements related to financial statement disclosures.

Chapter 2 provides an in-depth overview of the lease accounting standard issued by the FASB) in February 2016. This includes a discussion of the primary reasons for the change as well as how to identify a lease within a contract. This chapter also provides an in-depth review of lease classification, initial measurement, subsequent measurement, presentation & disclosure, as well as transition requirements. The chapter concludes with a discussion of some of the significant differences between IFRS 16 (the IASB’s lease accounting standard) as well as private company considerations.