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This course is dedicated to Step Two of the revenue recognition model “Identify Performance Obligations”.  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, we are creating individual courses with multiple case scenarios that apply to the individual given steps.  This course applies to Step Two – Identify Performance Obligations.  The course includes the many considerations companies must take into account when identifying how many performance obligations may exist.  We review the concepts of distinct vs. non-distinct goods and services as well as goods and services that are distinct within the context of the contract.  We also discuss the concept of a performance obligation representing a material offer and how that should be accounted for. 

After taking this course, you should be able to effectively apply your understanding of Step Two 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

  • Explore requirements behind step two of the revenue recognition standard “Identify Performance Obligations".
  • Identify differentiation between distinct and non-distinct goods/ services.
  • Explore examples of both distinct and non-distinct goods/services.
  • Identify performance obligations (PO) for the following scenarios:
    • Distinct goods/services
    • Non-distinct goods/services
    • Intellectual property
    • Bundled goods/services  
Last updated/reviewed: October 18, 2018

Included In Certifications

This course is included in the following Certification Programs:

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

8 Reviews (43 ratings)Reviews

4
Anonymous Author
Decent guide to case scenarios for performance obligations. Will be useful.
4
Anonymous Author
Good course for regular subscription price (not certification price). Benefited from taking all the courses. A lot of repetition could be viewed as reinforcing or redundant depending on how quickly can learn. Would rely on wording on slides more than those spoken, as less technically precise. Now have strong foundation in ASC 606.
5
Member's Profile
The learning objectives were very well communicated with simple examples! The major agenda items were very easy to navigate. Would definitely recommend to others for reference and review.
5
Anonymous Author
Another great course from Lynn Fountain with excellent examples, including a variety of industry examples. For those looking for more reality, this is an informative webinar.
5
Member's Profile
Examples in this course and reiteration of certain concepts and definitions covered in previous sessions really helped with the better understanding and learning.
5
Anonymous Author
This was a tough course, but well worth it! The examples really illustrate how to properly apply the standards to a wide variety of scenarios.
5
Member's Profile
Great course, excellent examples and a wealth of information is provided through this course. I would highly recommend it.
3
Member's Profile
Good examples outlining performance obligations which is such a tricky area.

Prerequisites

Course Complexity: Intermediate

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
  3:06Introduction to Revenue Rec: Case Scenarios for Performance Obligations
  11:34Performance Obligation
  7:46Distinct Good and Services
  10:16Example One: Multiple Performance Obligations
  11:03Example Three: Distinct Goods/Services
  10:57Non-Distinct Goods/Services
  6:29Loyalty Programs
  3:54Determination of Distinct vs. Non-Distinct
  8:14Intellectual Property Revenue
  2:47Summary
CONTINUOUS PLAY
  1:16:05 Revenue Rec: Case Scenarios for Performance Obligations
SUPPORTING MATERIALS
  PDFSlides: Revenue Rec: Case Scenarios for Performance Obligations
  PDF Revenue Rec: Case Scenarios for Performance Obligations Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM