Investors and other financial statement have provided comments to the SEC on revenue-related disclosures. They felt the standard did not provide sufficient detail to perform detailed analysis.

One of the goals of the new standard is to introduce disclosure requirements that improve the information communicated in financial statements.

The new standard requires additional disclosures to better communicate the nature, amount, timing, and uncertainty of an entity’s revenue and cash flows (ASC 606-10-50-1). Filers are required to provide qualitative and quantitative information about the following:

  • Contracts with customers
  • Significant judgments made in applying the new standard
  • Assets recognized from the costs to obtain or fulfill a contract

An entity is required to disclose revenue recognized from contracts with customers as well as impairment losses on any contract assets arising from those contracts. Disclosure is required unless these amounts are presented separately on its financial statements.

Topics Covered:
The standard also requires information about the following categories:

  • Disaggregation of revenue,
  • Contract balances,
  • Performance obligations

This session will deal directly with disclosure requirements for the standard. Several courses currently exist on the platform related to an overview of the standard and deep dive into individual steps of the standards.

Learning Objectives
  • Explore and examine why more robust disclosure requirements are needed.
  • Discover and evaluate components of contract balances required to be disclosed.
  • Explore components of performance obligations required to be disclosed.
  • Identify and evaluate components of significant judgements that must be disclosed.
  • Explore and evaluate components of transaction price that must be disclose.
  • Discover and evaluate assets recognized from costs to obtain or fulfill a contract that must be disclosed.
  • Discover and discuss components that must be reported in interim reporting.
Last updated/reviewed: March 8, 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”
11 Reviews (45 ratings)

Reviews

5
Member's Profile
I've now completed the ASC 606 revenue recognition certification course. Overall, this is a great course. It provides good information and examples related to each of the 5 steps of the new revenue recognition standard (ASC 606).

5
Anonymous Author
Good stuff. The concepts are a bit more technical, but the materials do a good job of summarizing in a clean, precise manor.

4
Anonymous Author
I thought this course was a great refresher or applying 606 to a new organization. I would recommend it

4
Anonymous Author
Disaggregation helps investors in understanding the persistency of income and expense items.

5
Member's Profile
Great program, the revenue recognition disclosure requirements were disclosed very clearly

5
Anonymous Author
Great course! It takes some time and attention to absorb, but I will use what I learned.

5
Member's Profile
Lynn’s course on the disclosure requirements for ASC 606 was very well presented

5
Member's Profile
Very well organized and clearly presented. Examples help with the understanding.

5
Anonymous Author
Provides clarity on various revenue recognition disclosures under new ASC 606

3
Anonymous Author
good intro update on revenue recognition and asc topic 606

5
Anonymous Author
I enjoyed this course, and I found it very informative.

Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Audience: Anyone working with the revenue recognition standard including:
• CEO’s
• Boards
• CFO’s
• Financial and Accounting Personnel
• Internal and External Auditors.
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 AND OVERVIEW
  Introduction to Revenue Recognition (ASC Topic 606): Disclosure Requirements “Contracts with Customers”4:10
  Disclosures Requirements8:42
  Disaggregation6:29
  Contract Balances and Performance Obligation13:09
  Practical Expedient4:18
  Example11:43
  Disclosure of Significant Judgments4:46
  Contract Assets and Contract Liabilities12:47
  Summary and Appendix2:18
CONTINUOUS PLAY
  Revenue Recognition (ASC Topic 606): Disclosure Requirements “Contracts with Customers”1:08:21
SUPPORTING MATERIAL
  Slides: Revenue Recognition (ASC Topic 606): Disclosure Requirements “Contracts with Customers”PDF
  Revenue Recognition (ASC Topic 606): Disclosure Requirements “Contracts with Customers” Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam