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This course is dedicated to the evaluation of case scenarios related to Step Four and Five of the revenue recognition model.  Step Four entails “Allocating the Transaction Price to Performance Obligations”.  Step Five entails “Recognizing Revenue”.  Previous courses have outlined each of the individual five steps of the model and provided case examples.  We have also developed two broad case study courses that cover scenario examples for each of the five steps.

In order to focus directly on aspects within each step, individual courses have been created with multiple case scenarios that apply to the individual given steps.  This course includes the many considerations companies must take into account when determining how to allocate the transaction price to performance obligations and then move to the final step of recognizing revenue.  We review the concepts of allocation methods and methods to estimate stand-alone selling price.  We also discuss aspects involved in recognizing revenue including accounting for discounts, variable consideration and how to recognize revenue over time versus at a point in time.

After taking this course, you should be able to effectively apply your understanding of Step Four and Five of the revenue recognition model to specific scenarios within your business.  Each learning objective listed utilizes multiple examples from various industries to help interpret and practice the concept.

Learning Objectives

  • Identify important components involved in Step Four – Allocate transaction price to Performance Obligations (PO).
  • Explore the various estimation approaches for determining stand-alone selling price (SSP) outlined by the standard.
  • Identify how to allocate discounts between performance obligations.
  • Explore concepts of variable consideration.
  • Explore elements of Step Five – recognize revenue.
  • Identify how to recognize revenue over time vs. at a period of time.
  • Identify methods for measuring progress towards completion of a project including input method and output method.
  • Explore concepts of enforceable right of payment.
  • Identify components necessary when a right of return exists.
Last updated/reviewed: March 02, 2018

Included In Certifications

This course is included in the following Expert Certifications:

15 CoursesRevenue Recognition Certification

  1. Overview of Complying with the ASC 606 Revenue Recognition Standard
  2. ASC 606 Revenue Recognition: Considerations for Identifying the Contract Part 1
  3. ASC 606 Revenue Recognition: Considerations for Identifying the Contract Part 2
  4. ASC 606 Revenue Recognition: Considerations for Performance Obligations Part 1
  5. ASC 606 Revenue Recognition: Considerations for Performance Obligations Part 2
  6. ASC 606 Revenue Recognition: Determining the transaction price Part 1
  7. ASC 606 Revenue Recognition: Determining the transaction price Part 2
  8. ASC 606 Revenue Recognition: Allocating transaction price to performance obligations
  9. ASC 606 Revenue Recognition: Recognizing Revenue
  10. ASC 606 Revenue Recognition: Case Scenarios for Identifying the Contract
  11. ASC 606 Revenue Recognition: Case Scenarios for Performance Obligations
  12. ASC 606 Revenue Recognition: Case Scenarios for Transaction Price
  13. ASC 606 Revenue Recognition: Case Scenarios for Allocating Transaction Price & Recognizing Revenue
  14. ASC 606 Revenue Recognition: Case Scenarios for 5 Step Revenue Recognition Process Part 1
  15. ASC 606 Revenue Recognition: Case Scenarios for 5 Step Revenue Recognition Process Part 2

3 Reviews (18 ratings)Reviews

5
Member's Profile
Great course and excellent material the video presentations were very informative. The examples were very helpful in understanding the topic.
5
Anonymous Author
This was a very informative course with lots of great information that will help me to apply ASC 606 standards in my current role.
5
Member's Profile
Good examples and discussion on allocating price to obligations.

Prerequisites

Course Complexity: Advanced

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:34Introduction to Revenue Recognition: Case Scenarios for Allocate Transaction Price & Recognize Revenue
Case Scenarios
  8:11Allocate
  16:03Example Adjusted Market
  7:03Expected Cost Plus Margin
  11:05Residual Approach
  9:50Variable Consideration
  15:22Recognize Revenue Overtime
  9:02Methods for Recognizing Revenue Overtime
  7:41When Output and Input are Inappropriate
  8:08Recognize Revenue at a Point in Time
Conclusion
  1:52Summary
CONTINUOUS PLAY
  1:37:50Revenue Recognition: Case Scenarios for Allocate Transaction Price & Recognize Revenue
Supporting Materials
  PDFSlides: Revenue Rec: Case Scenarios for Allocate Transaction Price & Recognize Revenue
  PDFSlides: Revenue Rec: Case Scenarios for Allocate Transaction Price & Recognize Revenue Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM