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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.

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

12 Reviews (62 ratings)Reviews

5
Member's Profile
Good overview to get us started on the right track
5
Member's Profile
Very helpful overview for those who are already familiar with the topic. Might be a little challenging for people who are new to this standard as it is a very very complex topic and, obviously, cannot be covered in 1 -2 hours CPE course.
5
Member's Profile
well organized, easy to follow steps and understand, it provided a well organized foundation for the principles and made it easy to see areas that will require more in-depth analysis
5
Member's Profile
The course is well structured and the instructor presented the material very professional. I have a good understanding of the whole concept. Enjoy it very much!
4
Member's Profile
Even though this was an overview it provided a lot of information and things to think about. It was hard to stay focus because the student was not engaged.
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
5
Member's Profile
One of the better courses I have taken on the new revenue recognition standards.
5
Member's Profile
Excellent introduction to this topic. There were good examples throughout.
5
Member's Profile
Very good course for overview of revenue recognition standard.
5
Member's Profile
The speaker has provided very nice explanation with examples.
5
Member's Profile
Great summary and overview of the new revenue standard.

Prerequisites

Course Complexity: Foundational

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