COVID-19 and its related impact on the economic environment have raised numerous questions that affect almost each step of the updated standard. Those that have already implemented ASC 606 may need to review the terms of their contracts and adjust as necessary. Companies must recognize the impact and execute appropriate considerations within each step. The pandemic could affect various aspects embedded within each step of an entity's revenue recognition process. It is critical to note the potential significant impact that the COVID-19 crisis has brought to aspects of the revenue standard. Some impacts within the various steps include:

  • Step 1: Identify the contract with a customer
    • Contract enforceability
    • Collectability
    • Contract modifications and combinations
  • Step 2: Identify performance obligations
    • Material rights
  • Step 3: Determine the transaction price
    • Price concessions and other variable considerations
    • Significant financing component
    • Other extended payment terms
  • Step 4: Allocate the transaction price
    • Changes impacting standalone selling prices
  • Step 5: Recognize Revenue
    • Revenue recognized overtime
    • Impairment of receivables and contract assets
    • Contract costs
    • Disclosures

On May 28, 2014, the FASB completed its Revenue Recognition (RR) project issuing ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Guidance establishes principles to report information about the nature, timing, and uncertainty of revenue from contracts with customers. The standard affects all entities that have contracts with customers with some exclusions. This session will discuss basic concepts around each step of the revenue model and also implications that COVID-19 have surfaced.

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Resources Consulted:
• ASC 606-10-32-15 to 32-20, 55-244 to 55-246.
• ASU 2014-09: “Revenue from Contracts with Customers.” BC229-BC247.
• Croner-I, “A14 Revenue from Contracts with Customers.” (2019). Section 7.4.2-2 and 7.4.2-2.
• FASB, ”Revenue Recognition Implementation Q&As.” January 2020). Questions 31-37.
• FASB TRG Memo 20: “Significant Financing Components.” 26 January 2015.
• FASB TRG Memo 30: “Significant Financing Components.” 30 March 2015.
• EY, Financial Reporting Developments: “Revenue from contracts with customers.”January 2020. Section 5.5.
• KPMG, Handbook: “Revenue Recognition.”December 2019. Section 5.5.
• PWC, “Revenue from contracts with customers”March 2020. Section 4.4.

Learning Objectives
  • Explore and overview the current economic environment and the impact of COVID-19 on the revenue recognition standard.
  • Discover and overview the standard’s five step model.
  • Explore and examine Step One: Identify the Contract
  • • Evaluate impact of COVID-19 on Step One.
  • Explore and examine Step Two: Determine Performance Obligations
  • • Evaluate impact of COVID-19 on Step Two
  • Explore and examine Step Three: Determine the Transaction Price
  • • Evaluate impact of COVID-19 on Step Three
  • Explore and examine Step Four: Allocate the Transaction Price to Performance Obligations
  • • Evaluate impact of COVID-19 on Step Four
  • Explore and examine Step Five: Recognize Revenue
  • • Evaluate the impact of COVID-19 on Step Five
  • Identify and evaluate scenarios related to COVID-19
Last updated/reviewed: March 15, 2024

Included In Certifications

This course is included in the following Certification Programs:

17 CoursesRevenue Recognition Certification

  1. Revenue Recognition (ASC Topic 606) Standard Overview
  2. Revenue Recognition (ASC Topic 606): Identify The Contract Part 1
  3. Revenue Recognition (ASC Topic 606): Identify The Contract Part 2
  4. Revenue Recognition (ASC Topic 606): Performance Obligations Part 1
  5. Revenue Recognition (ASC Topic 606): Performance Obligations Part 2
  6. Revenue Recognition (ASC Topic 606): Transaction Price Part 1
  7. Revenue Recognition (ASC Topic 606): Transaction Price Part 2
  8. Revenue Recognition (ASC Topic 606): Allocating Transaction Price
  9. Revenue Recognition (ASC Topic 606): Recognize Revenue
  10. Revenue Recognition (ASC Topic 606): Scenarios For Identify The Contract
  11. Revenue Recognition (ASC Topic 606): Scenarios For Performance Obligations
  12. Revenue Recognition (ASC Topic 606): Scenarios For Transaction Price
  13. Revenue Recognition (ASC Topic 606): Scenarios For Transaction Price And Recognize Revenue
  14. Revenue Recognition (ASC Topic 606): Case Scenarios Part 1
  15. Revenue Recognition (ASC Topic 606): Case Scenarios Part 2
  16. Revenue Recognition (ASC Topic 606) COVID Implications
  17. Revenue Recognition (ASC Topic 606): Disclosure Requirements “Contracts with Customers”
27 Reviews (116 ratings)


Member's Profile
a) The course is an excellent introduction to ASC 606. b) The course is lot more effective when reviewed along with actual guidance handbook (I downloaded a copy of the Deloitte roadmap to applying the standard). All in all excellent value for money. c) I would definitely recommend a class room style setting (virtual or in person) to delve deeper into the more nuanced topics in the standard with more examples. d) Another observation, often times I see the instructor referring to the course not being consultative in nature, I get it that there is a liability issue but it stymies the learning process for students. Illumeo will be served well to look into this.

Anonymous Author
The course is a great overview of ASC 606 and does a great job in explaining how covid can impact all 5 steps of revenue recognition and disclosures. The examples were informative and gets you thinking on how one might be impacted. Examples like collectability and concessions may have an impact on your numbers as customer's credit worthiness declines...

Anonymous Author
This is a good recap of revenue recognition steps plus implications of COVID. The pandemic and the economic consequences may result in impacted revenue recognition areas such as collectability, financing component consideration and stand-alone selling price.

Anonymous Author
If you want a good refresher or overview of ASC 606, this course provides that. If you wanted answers on how COVID impacts the application of ASC 606, this course is good at identifying questions to consider but leave many questions unanswered.

Anonymous Author
A contract modification exists when the parties to a contract approve a modification that either creates new or changes existing enforceable rights and obligations of the parties to the contract.

Anonymous Author
This course material provides good insight on the COVID implications to revenue recognition. The facilitator provides a presentation that is clear and easy to follow. I do recommend this course!

Anonymous Author
Never thought about the COVID-19 pandemic could affect various aspects of an entity's revenue recognition. Glad that I take the course to gain some knowledge of this.

Member's Profile
Very informative, course, buy too much repetitions from the Revenue recognition course. Would have preferred more of the COVID19 impact discussion with more examples.

Anonymous Author
Great course covering the contract obligations, revenue recognition, and other challenges faced by parties to contract for sale of goods and services.

Anonymous Author
This course provides very relevant and interesting information on the new revenue recognition standard and the impact of Covid on this new standard.

Anonymous Author
The overall course was very informative and covered implications under each step of the RR process. Delivery could have been more enthusiastic.

Anonymous Author
I found this course section very interesting and complex. I don't think all of this will be very applicable going forward but good to know.

Anonymous Author
Good explanation of the steps involved in revenue recognition for contracts and the impact of COVID-19. PDF of slides is a useful reference.

Anonymous Author
Great course and very relevant topic considering the implications Covid is having on the current business environment.

Member's Profile
Very nice information to get you to think about COVID considerations. No course will be able to cover all scenarios.

Anonymous Author
Good course overall. The information was organized well and appropriate for multiple levels of experience.

Anonymous Author
Great course and very interesting on the impacts that covid has had on the revenue recognition model.

Member's Profile
Very concise and easy to follow. The slides will serve as an excellent reference tool. Thank you.

Member's Profile
Great topic. Timely and informative. Useful information given the current state of the economy.

Member's Profile
Great course that goes into great detailed examples to help solidify the material being taught

Anonymous Author
Very helpful session to highlight the many considerations that Covid may affect for 606.

Anonymous Author
Very good summary depicting Covid concerns and considerations that must be evaluated

Anonymous Author
very relevant course given the current pandemic and implications to all industries

Anonymous Author
excellent info for current time effects of the pandemic and what to consider

Anonymous Author
Overall a good revision of all the steps and its impact due to COVID 19.

Anonymous Author
The course is well organized with the most up-to-date topic.

Anonymous Author
Really great information regarding the impact of covid

Course Complexity: Intermediate

No advanced preparation or prerequisites are required 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 .
Instructor for this course
Course Syllabus
  Introduction to COVID Impact on Revenue Recognition Standard6:40
  Overview COVID-19 Impact8:01
Five Step Model
  Five Step Model10:46
  Step One: COVID 19 Challenges10:05
  Other Considerations5:44
  Step Two: Performance Obligations10:20
  COVID-19 Implications to Performance Obligations6:39
  Step Three: Transaction Price4:19
  COVID Implications on Step Three10:35
  Step Four: Allocate and COVID Implications3:58
  Step Five: Recognize Revenue4:56
  COVID Impact on Revenue Recognition Standard1:26:06
  Slides: Revenue Recognition COVID ImplicationsPDF
  Revenue Recognition COVID Implications Glossary/ IndexPDF