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The new revenue recognition standard outlines five steps for proper compliance.  At the surface, these steps seem simplistic.  However, there are many components that should be considered within each step based on your process and industry.  Previous courses in this series have covered the standard at a high level and evaluated steps one through four of the standard. They are:

  • Complying with the Revenue Recognition Standard
  • Revenue Recognition: Considerations for Identifying the Contract - Part One and Part Two
  • Revenue Recognition: Considerations for Performance Obligations – Part One and Part Two
  • Revenue Recognition: Considerations for Transaction Price – Part One and Part Two
  • Revenue Recognition: Allocate Transaction Price to Performance Obligations

This segment is designed to evaluate Step Five of the new model dealing with recognizing revenue which is the final step in applying the new revenue recognition standard. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. For performance obligations satisfied over time, an entity must decide how to appropriately measure the progress and completion of the performance obligation. A performance obligation is satisfied when or as control of the good or service is transferred to the customer. There are several issues companies should consider in applying step 5 of the standard:

  • Determining if a Performance Obligation is satisfied over time
  • Identifying indicators of transfer of control of goods/services
  • Utilizing input and output methods to measure progress of revenue recognition
  • Understanding stand-ready obligations and how to apply discounts.

Within this segment, we will cover the aspects of recognizing revenue.

Learning Objectives

  • Explore how to recognize revenue in step five of the new revenue recognition standard.
  • Explore how to recognize revenue over a period of time
  • Explore how to manage revenue satisfied at a point in time
  • Explore how to measure progress of performance obligations and properly recognize revenue.
  • Identify restrictions for measuring progress.
  • Identify principles for measuring progress.
Last updated/reviewed: February 16, 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

5 Reviews (38 ratings)Reviews

5
Member's Profile
This course was very informative and increased my knowledge in recognizing revenue. The examples were very helpful and allowed for ease of understanding the concepts.
4
Anonymous Author
The examples in this one are good to show the overall thought process that we have to do for a single contract. More of this would be helpful.
5
Anonymous Author
This is a hard topic, but the instructor did a great job of explaining them. She went over the examples clearly to reiterate the concept
5
Anonymous Author
This was another tough course, but the notes were very detailed and allowed me to learn the material in an easy way.
5
Member's Profile
Good discussion on recognizing revenue under the new revenue standard.

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
  3:05Introduction to Revenue Rec: Revenue Recognition
  4:21Recognize Revenue
  3:47Satisfied Over Time
  9:35Criterion 1
  5:38Example of Alternative Use
  12:58Recognize Revenue Over Time
  4:18Satisfied at a Point in Time
  4:42Measuring Progress
  7:32Example
  2:10Summary
CONTINUOUS PLAY
  58:06Revenue Rec: Revenue Recognition
SUPPORTING MATERIALS
  PDFSlides: Revenue Rec: Revenue Recognition
  PDFRevenue Rec: Revenue Recognition Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM