The new revenue recognition standard outlines five steps for proper compliance.  At the surface, these steps seem simplistic.  However, there are many components that should be considered within each step based on your process and industry.  Previous courses in this series have covered the standard at a high level and evaluated steps one through four of the standard. They are:

  • Complying with the Revenue Recognition Standard
  • Revenue Recognition: Considerations for Identifying the Contract - Part One and Part Two
  • Revenue Recognition: Considerations for Performance Obligations – Part One and Part Two
  • Revenue Recognition: Considerations for Transaction Price – Part One and Part Two
  • Revenue Recognition: Allocate Transaction Price to Performance Obligations

This segment is designed to evaluate Step Five of the new model dealing with recognizing revenue which is the final step in applying the new revenue recognition standard. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. For performance obligations satisfied over time, an entity must decide how to appropriately measure the progress and completion of the performance obligation. A performance obligation is satisfied when or as control of the good or service is transferred to the customer. There are several issues companies should consider in applying step 5 of the standard:

  • Determining if a Performance Obligation is satisfied over time
  • Identifying indicators of transfer of control of goods/services
  • Utilizing input and output methods to measure progress of revenue recognition
  • Understanding stand-ready obligations and how to apply discounts.

Within this segment, we will cover the aspects of recognizing revenue.

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.
https://www.revenuehub.org/

Learning Objectives
  • Explore how to recognize revenue in step five of the new revenue recognition standard.
  • Explore how to recognize revenue over a period of time
  • Explore how to manage revenue satisfied at a point in time
  • Explore how to measure progress of performance obligations and properly recognize revenue.
  • Identify restrictions for measuring progress.
  • Identify principles for measuring progress.
Last updated/reviewed: August 10, 2023

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”
79 Reviews (375 ratings)

Reviews

5
Anonymous Author
A very thorough instructor for ASC606 subject. Ms. Fountain does an excellent job dissecting intricacies of the standard as written by FASB. While audio is a bit monotonous, but the PP slides are excellent in supporting her narrative. Do use them along with the audio stream, and separately when studying for exam! Examples were the most useful for understanding the standard. ASC606 is overwhelming as a standard but is very manageable when dealing with specific situation at hand. Thank you, Lynn!

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.

4
Member's Profile
This course went in depth into the ASC-606 from a conceptual standpoint. I wish there were more applicable examples where the viewer could work through problems. I would have been helpful to add practice on how to allocate transaction price or how much revenue to recognize at a certain point in the contract term.

4
Anonymous Author
I think the Final Exam for this course had somewhat confusing questions. Not sure if they were designed as "trick" questions intentionally, but I felt I understood the material but found myself confused with a few of the questions. Outside of that I felt the content was good.

5
Member's Profile
Informative review of the last step in the revenue recognition process, the timing of the actual recognition of revenue. Looking forward to taking the case study courses to practice and reinforce what I've learned from the revenue recognition series of courses.

4
Member's Profile
Good overall course, and good examples in this one. I'm not sure I agree with the one on the video game consulting being a single PO with the license. In SaaS contracts it's not done that way. But maybe there are some differences. Anyway, this one is pretty good

5
Anonymous Author
The instructor provides great overview of Step 5, as well as putting in real life examples that can be utilized as reference points when documenting and creating memos. Good overview, and good to take to set up a foundational knowledge of Step 5

4
Anonymous Author
Good, comprehensive overview of the final step of revenue recognition in determining whether the recognition is point in time or over time. Numerous examples illustrate the use of both methods.

4
Member's Profile
good course and proved to be a good recap of the earlier courses with a couple of extra nuances sprinkled in. 606 is an ocean and the instructor does a good job of covering the breadth.

2
Anonymous Author
I found this course section very interesting and complex. Everything taught is very interesting and i never knew there were so many details involved in revenue recognition

5
Anonymous Author
Great course on revenue recognitions, specifically covering the basics such as: how to determine approach, how to measure progress of performance and relevant restrictions.

3
Anonymous Author
I really really appreciated that you included the slides I PDF format for us to reference! That was easier to read through than listening to the reading of the slides.

5
Anonymous Author
This was an interesting course delving deeper into revenue recognition under ASC606. Good examples were presented to help further understand the different situations.

5
Member's Profile
This course was very informative and increased my knowledge in recognizing revenue. The examples were very helpful and allowed for ease of understanding the concepts.

4
Member's Profile
Whew!, rev recognition is new and tricky. Although some rules remain the same there is now new trickery to add to the mix. There is a lot of good information here.

5
Anonymous Author
I thought it was a great course and taught very well. I liked the examples that were used. Easy to follow. Will be joking the other parts that are part of this topic

4
Member's Profile
The course explained overall the new measurements for ASC606 with comparisons to the older standard and examples to discuss the standard. Overall good course.

5
Anonymous Author
This course was educational and very informative. The allotted time appeared sufficient. The instructor presentation of the course material was on point.

5
Anonymous Author
The information in this segment was very detailed and the examples really depicted the considerations that must be reviewed to make a determination.

3
Anonymous Author
This course covered the basics of ASC606. It was well taught but could have made less confusing examples that were spread out over multiple slides.

4
Anonymous Author
The examples in this one are good to show the overall thought process that we have to do for a single contract. More of this would be helpful.

5
Anonymous Author
Great instructor - I enjoyed the examples she walked through and the rationale she provided to understand the thought process along the way.

3
Anonymous Author
I thought this was a challenging class but did learn a lot of information about the recognition of revenue. This class was very detailed.

5
Anonymous Author
This is a hard topic, but the instructor did a great job of explaining them. She went over the examples clearly to reiterate the concept

4
Anonymous Author
There are so many interesting examples in the course, which are easy for us to grasp the concept here. Thanks for Mr. Lynn great works.

5
Anonymous Author
Great course to go over step 5 of the revenue recognition standard under Topic 606 and application of the standard to specific examples

5
Anonymous Author
Recognition of revenue and the criterions were very easy to follow and understand, Lynn as always does a good job explaining the steps

5
Anonymous Author
This was a very good course and I have taken all of the instructors other revenue recognition courses as well. I recommend them all.

5
Member's Profile
Excellent description of the proper application of the recoginizing revenue over time or at a point in time. Great use of examples.

5
Anonymous Author
Instructor gave great examples and summarized very well how to recognize revenue for goods/services satisfied over a period of time.

5
Anonymous Author
Great refresher course on revenue recognition and the different criteria to recognizing revenue over time vs point in time.

5
Anonymous Author
This is a very good course. It helps me understand whether revenue should be recognized over time or at a point in time.

4
Member's Profile
Great examples. I would have liked to have more examples about Healthcare and explicit or non-explicit price concessions.

5
Anonymous Author
Slides were very helpful and not too cluttered with information. Speaker is kind of monotone which makes it a long subject

5
Member's Profile
The instructor's comments didn't add to the slides; halfway through the course I decided to just read the slides myself.

5
Anonymous Author
This is a hard topic and Lynn does a great job of providing examples and how to apply this principle. Excellent course.

5
Anonymous Author
This was another tough course, but the notes were very detailed and allowed me to learn the material in an easy way.

5
Anonymous Author
Concise explanation of the 5th step of revenue recognition. Well articulated and great diversity in examples.

4
Anonymous Author
Good overview of recognizing revenue. interesting to learn about alternative uses and their affect on revenue.

5
Member's Profile
Very informative and detailed. A good number of examples illustrating complicated aspects of the guidance.

5
Anonymous Author
This course was well presented with specific examples that helped understand the underlying concepts.

5
Member's Profile
Great conclusion to the series. Lynn is detailed and provides good examples to reinforce concepts.

5
Anonymous Author
What you would expect for a foundation level course. The questions proved to be a nice refresher.

2
Member's Profile
I found the instructor to not be useful all the information you need to know is in the powerpoint

4
Anonymous Author
Good comprehensive course. Great overview of the last step in the revenue recognition process.

4
Anonymous Author
Very informative course that will definitely assist in the audit field. Highly recommend it.

4
Anonymous Author
Examples were extremely complex, but otherwise rhis was an enjoyable and informative course.

4
Member's Profile
The course needed the criterion for measuring performance over time to be more specific

5
Anonymous Author
Instructor thoroughly provides examples which break down and explain rev rec standards

4
Anonymous Author
Good course for a dry topic such as revenue accounting. Very helpful information.

4
Anonymous Author
pretty good overview for level of course. I would like additional detail for saas.

5
Anonymous Author
Overall, course was informative and appropriate for multiple experience levels.

3
Anonymous Author
enjoyed the course. gave me a good understanding of recognizing revue over time.

5
Anonymous Author
great course and very informative on when is a proper time to recognize revenue.

5
Anonymous Author
Good examples and summary for step 5 - final step in revenue recognition model.

5
Anonymous Author
In-depth analysis of the issues surrounding the new revenue recognition rules.

3
Anonymous Author
Final exam questions are confusing in terms of pharsing and choices provided.

5
Member's Profile
Helpful course with lots of great examples and details on the new guidance.

4
Anonymous Author
It was a good topic. The examples could have been explained more clearly.

5
Anonymous Author
Provided clear explanation of Step 5 of the new revenue recognition model

4
Anonymous Author
More good info and considerations to determining timing of recognition.

3
Member's Profile
it was difficult but I finally passed the exam. I took exam three times

5
Member's Profile
Good discussion on recognizing revenue under the new revenue standard.

5
Member's Profile
Good discussion on recognizing revenue under the new revenue standard.

5
Anonymous Author
This course was well organized and easy to understand. I recommend it.

3
Anonymous Author
I really enjoyed this course and I highly recommend for other to take

4
Anonymous Author
Good overview of the steps required to recognize revenue under 606.

5
Anonymous Author
Interesting topic which was explained well with excellent examples

5
Anonymous Author
Thanks Lynn, I am quite satisfied with the info. You are the best.

4
Anonymous Author
again some very relative examples to understanding this section.

5
Anonymous Author
Course fully met expectations. Was well structured and presented.

4
Anonymous Author
I learn how to recognize revenue satisfied over a period of time.

5
Anonymous Author
This one I really liked. Great examples, as usual. Thank you.

5
Anonymous Author
lots of info and good examples to help apply the concepts

5
Member's Profile
Easy to follow course on the revenue recognition standard.

4
Member's Profile
Decent overview of subject matter with concrete examples.

4
Anonymous Author
This course provided a good over of revenue recognition.

5
Anonymous Author
The materials are well organized with great examples.

5
Anonymous Author
very easy to follow explanation of ASC 606 standards

Prerequisites
Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

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 Rec: Revenue Recognition 3:05
  Recognize Revenue4:21
  Satisfied Over Time3:47
  Criterion 19:35
  Example of Alternative Use5:38
  Recognize Revenue Over Time12:58
  Satisfied at a Point in Time4:18
  Measuring Progress4:42
  Example7:32
  Summary2:10
CONTINUOUS PLAY
  Revenue Rec: Revenue Recognition 58:06
SUPPORTING MATERIALS
  Slides: Revenue Rec: Revenue Recognition PDF
  Revenue Rec: Revenue Recognition Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam