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This course is the first in a series on the Topic 606 (ASC 606) revenue recognition standard.  The standard outlines five steps for proper compliance.  At the surface, these steps seem simplistic.  However, there are many considerations that should be considered within each step based on your process and industry. 

This course is designed to provide an overview of the technical guidance and outline the five steps involved in the revenue recognition model.  We also explore some concepts to consider within each step and then evaluate some challenges that specific industries may have when complying with the standard. 

On May 28, 2014, the Financial Accounting Standards Board (FASB) completed its Revenue Recognition project. It issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606).  The guidance establishes principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers. 

The standard affects all entities (public, private, and not-for-profit) that have contracts with customers.  Exclusions include:

  • Leases accounted for under FASB Accounting Standards Codification (ASC) 840, Leases;
  • Insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance;
  • Most financial instruments, and guarantees (other than product or service warranties).

Transaction and industry specific revenue recognition guidance is eliminated. It is replaced with a principle based approach for determining revenue recognition. The new standard requires significantly more disclosure than previous generally accepted accounting principles (GAAP).

Learning Objectives

  • Identify the effective dates for the new revenue recognition standard.
  • Explore the need for the new revenue recognition standard.
  • Explore the new revenue recognition core principles and the five-step revenue model.
  • Identify the impact of the new revenue recognition standard on various revenue concepts.
  • Explore the impact of the revenue recognition standard on various industries.

2 Reviews (30 ratings)Reviews

5
Member's Profile
Course material provided step by step how to deal with the new Revenue Recognition Standards in a concise manner.
4
Member's Profile
Gives detailed standard of revenue recognition. You need more time to study this area

Prerequisites

Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. 

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
  4:27Introduction to Complying with the Revenue Recognition Standard
Revenue Recognition Standard
  3:13Effective Dates
  4:35The Need
  3:07Core Principle
  7:18Five Step Model
  4:31Impact
  12:04Identify the Contract
  14:27Performance Obligations
  13:28Transaction Price
  6:57Key Areas to Address
CONCLUSION
  14:43Industry Impact
CONTINUOUS PLAY
  1:28:48Complying with the Revenue Recognition Standard
SUPPORTING MATERIALS
  PDFSlides: Complying with the Revenue Recognition Standard
  PDFComplying with the Revenue Recognition Standard Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM