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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.
Last updated/reviewed: October 16, 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

81 Reviews (338 ratings)Reviews

5
Anonymous Author
This presenter is easy to follow and very effective (my second course with this instructor). She provides an excellent overview of the standard along with (as she is known for) practical examples. I appreciated the examples across different types of organizations and industries. She gives enough info. to equip you with a general understanding and respect for the complexities that organizations may have to navigate.
5
Member's Profile
The course very clearly outlines the new revenue guidance using examples and a breakdown of each step in the model. I liked how the course was organized and how the instructor covered specific industry impacts. The content will be helpful for accountants within an organization who may have to implement the new standard or consultants who provide guidance to clients that will be adopting it.
5
Member's Profile
ASC 606 is a very difficult standard to understand without properly going through the five critical steps to apply the standard to contracts with customers properly. Instructor did a tremendous job outlining and going into an overview of all 5 steps and the proper application of the steps to evaluating when and how much revenue to recognize.
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 presenter was very knowledgable. She provided the information in a fashion that made it easy to digest. The course was basic but it provided a good foundation to move on to more complicated aspects of ASC606 and specific industry impacts.
3
Member's Profile
Overall the course was good, but do not agree with the comment regarding the government contracting industry and it not following GAAP. I don't believe that to be true (more than a decade with government contractors) and a bit misleading.
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.
4
Member's Profile
This course provided a solid overall description of the revenue recognition framework and a good introduction to the steps (and challenges that accompany them). I also liked the section that went over the impact on certain industries.
5
Anonymous Author
The concepts are presented in a clear manner. Although there are many terms and acronyms, the subject matter is presented in plain English and at a good pace. The course is very thought provoking which is a good quality.
5
Anonymous Author
I enjoyed the instructor's conversational style of teaching. She was easy to listen to and helped me retain and comprehend the concepts well. The materials are great too--good reference for future when I implement.
5
Anonymous Author
This is an excellent course. It is my first Illumeo training course, and I feel it provided me with a great overview of the new standard. The presentation flows logically and smoothly. Highly recommend the trainer.
5
Member's Profile
I've taken many of Lynn's courses in the past. Her courses are well organized and presented well. I think her course material is excellent; especially for a consultant as myself. I highly recommend this class.
5
Member's Profile
This course was very informative and easy to follow. Lynn Fountain's lecture was very helpful, and she did a good job of explaining the material in an easy to learn manner, using plenty of real-world examples.
5
Member's Profile
Very useful overview of ASC606 that will hook you up. It opens the palette of impacts in several industries alerting you to dive deeper into its complexities and to follow the remainder courses on the subject.
5
Member's Profile
Liked the industry examples. Liked the way the course was laid out as well. Good job of explaining the effective dates for public and non-public as well as the requirements for the fives steps.
4
Anonymous Author
This course is a good overview of the new standard at a high level. A more detailed course would be required for specific application of the standard within an industry. Good place to start.
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
4
Anonymous Author
A good overview of the changes to revenue recognition. The examples were weak. I would like to hear examples that would actually be found across a variety of industries.
5
Member's Profile
Very well written and presented course. The pace to cover the materials was very good. I would recommend this course for a great overview of revenue recognition.
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
Anonymous Author
Very good overview of the introduction to ASC 606 requirements and description of the process steps and considerations required to implement this standard.
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
BEST explanation of a complex issue. This course helps you determine what areas of impact will be and what areas you need to focus on for your insudtry!
5
Member's Profile
Overview was very helpful and since it was two hours, went into greater detail than the one hour sessions do. Areas were clearly covered and concise.
5
Member's Profile
I really liked the Information on Healthcare as that is the industry I am in and would like more future CPE courses with examples in that industry.
5
Anonymous Author
I have read publications and watched videos on 606-10. I liked this course better as the instructor explained the guidance using simple examples.
5
Anonymous Author
I liked that this course broke down each of the five steps in the model even further and explained the complexities to consider with each step.
5
Member's Profile
This course moved with a readonable pace through the foundations of the standard. Various examples helped to illustrate the considerations.
5
Anonymous Author
The presentation was concise and informative. Viewing the presenter in the corner with no variability in setting was getting monotonous.
5
Member's Profile
This was a good introduction to ASC606 - highly recommend it to those who need a high level introduction to the impact/considerations.
4
Anonymous Author
This course was simple to follow along with. Everything was relevant and can be used in every day work duties in Revenue Accounting.
5
Member's Profile
very informative course. I learned a lot and is a great overall course. the instructor used examples that were easy to understand.
5
Member's Profile
Great little course. I liked the pdf ovreview and the glossary. The industry tips were great too. Good high level material
4
Anonymous Author
The course gave a great overview as to the high level 5 step process under 606 and unique insight into particular industries
4
Member's Profile
Great overview to this multi-facetted accounting standard that may have significant implications for different industries.
3
Anonymous Author
Extremely tedious. Healthcare has been estimating proper revenue recognition for years through contractual allowances etc.
5
Member's Profile
The content of this course was very informative. It was very in dept and provide insights into the new revenue standard.
5
Member's Profile
Course material provided step by step how to deal with the new Revenue Recognition Standards in a concise manner.
5
Member's Profile
The slides for the course are well organized and covered the revenue recognition standard very in detail.
5
Member's Profile
A very important course considering the new standard went into effect recently for non-public companies.
5
Member's Profile
This course was easy to follow and provided a good overview of the new revenue recognition standards.
5
Member's Profile
Very easy to follow providing a good understanding of the impact of the new revenue recognition rules
5
Anonymous Author
The instructor did a good job of introducing this complex subject. The slides are a good reference.
5
Member's Profile
Overview of Complying with the ASC 606 Revenue Recognition Standard.
5
Anonymous Author
Surprising how much information in here was still new-ish. Especially the breakdown of the 5 parts
5
Member's Profile
I really enjoyed this segment, and am anxious to enroll in additional segments within this topic.
4
Member's Profile
Good overall baseline for the new revenue recognition standard. Industry-specific examples help.
5
Anonymous Author
I must type as long as possible to get to 50 characters. This is the worse part of the course.
4
Member's Profile
instructor was just ok, not great. A bit mono-tone and not enough tangible, quality examples.
5
Member's Profile
This lesson is a good course to get someone up to speed on the key aspects of ASC 606.
5
Member's Profile
Great course! Very long and informative and drawn out video! The PDF's helped a lot too.
5
Anonymous Author
Very clear overview of 606. Looking forward to diving into the details in other videos.
4
Anonymous Author
This was a very helpful overview of the standard, its requirements and its impacts.
5
Member's Profile
Good overview, interesting to see the impacts on different industries at a high level
4
Member's Profile
Gives detailed standard of revenue recognition. You need more time to study this area
4
Member's Profile
Very technical and informative. Really appreciated the industry insights at the end.
5
Anonymous Author
Clear and concise. I liked the slides and was able to follow along very easily.
5
Member's Profile
One of the better courses I have taken on the new revenue recognition standards.
4
Anonymous Author
Excellent summary course on ASC 606 topics even if you have no prior knowledge.
5
Anonymous Author
This course provides a clear layout and summary of the new rev rec standards.
5
Anonymous Author
Great overview for non-revenue staff and introduction to new revenue standard
4
Anonymous Author
A very good overview of the main components of the revenue recognition process
4
Member's Profile
Good overview of the standard and the various industry impact considerations.
4
Member's Profile
very thorough. Everyone should get this course, from internal audit to CFO's
5
Member's Profile
Excellent introduction to this topic. There were good examples throughout.
5
Anonymous Author
The slides provided were very detailed and will be a great reference tool.
5
Anonymous Author
the slides were clear and I like the steps to follow. Helpful information.
4
Anonymous Author
Great Overview of the new standard that will help me in my current roles.
5
Anonymous Author
excellent course- Great and knowledgeable presenter- Also very good pace
4
Anonymous Author
This class was very informative and provided a good overview of the reg.
4
Anonymous Author
Trainer was mostly reading from slides, didn't offer multiple examples.
5
Member's Profile
Very good course for overview of revenue recognition standard.
5
Anonymous Author
Important to know for 2018. Covers the topic in simple terms.
5
Member's Profile
The speaker has provided very nice explanation with examples.
5
Member's Profile
Very good overview of the new revenue recognition standard.
5
Member's Profile
Great summary and overview of the new revenue standard.
4
Member's Profile
Very informative overview of the new Revenue Standard.
4
Member's Profile
Informative, with good examples of concepts provided.
5
Anonymous Author
Her courses are always clear with helpful powerpoints
5
Member's Profile
Good overview to get us started on the right track
5
Member's Profile
Great course. Very good slides, clear and concise.

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