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This course is dedicated to Step Three of the revenue recognition model “Determine the Transaction Price”.  Previous courses have outlined each of the individual five steps of the model and provided case examples.  We have also developed two broad case study courses that cover scenario examples for each of the five steps.

In order to focus directly on aspects within each step, individual courses have been created with multiple case scenarios that apply to the individual given steps.  This course applies to Step Three – Determine the Transaction Price.  The course includes the many considerations companies must take into account when determining the amount of consideration that should be included within the transaction price.  We review the concepts of variable consideration, explicit and distinct variability, consideration constraints, discounts, price concessions and other elements that can impact how transaction price is determined and when it is recognized.

After taking this course, you should be able to effectively apply your understanding of Step Three of the revenue recognition model to specific scenarios within your business.  Each learning objective listed utilizes multiple examples from various industries to help interpret and practice the concept.

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 the concepts that contribute to the transaction price
  • Identify considerations when evaluating transaction price
  • Explore the concepts of variable consideration
  • Identify methods to determine variable consideration
  • Explore the concept of variability constraints
  • Identify what constitutes implied variability
  • Explore non-cash considerations
  • Explore price concessions
  • Explore significant financing components
  • Explore volume discounts
Last updated/reviewed: March 5, 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”
21 Reviews (96 ratings)


Anonymous Author
I'm honestly just trying to get through the remainder of these courses. The tempo of the videos has been too slow and I found the constant abbreviation of terms to be forced and distracting. Why? Why are so many terms being abbreviated? I will never use "PO" for Performance Obligation and am so distracted and irritated by this it makes it difficult to get through the last of these courses.

Member's Profile
I learned additional nuances around transaction price especially around non-cash consideration. As the instructor recommends, the audience will benefit more by looking up examples online or by downloading guidance handbook which offer more depth to the topics being covered in the presentation. The presentation per se functions as a excellent starting point.

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.

Anonymous Author
This course for case scenarios to determine the transaction was the hardest for me but I enjoyed it. This course is imperative to take if you want to test your understanding of the material. The final exam questions force you to think and put together multiple concepts from earlier in the class. Great course.

Anonymous Author
It must be very difficult recording these courses and then finding that it's necessary or desirable to go back in and edit. Mostly it is handled very well, but the jumping and splicing can at times be jarring or confusing.

Anonymous Author
The use of abbreviations in this lecture was distracting and just felt a bit lazy. Even within the Rev Rec community, such abbreviations would not be used. Good content.

Member's Profile
5 star as the course covers the material in dept and the examples used were very good. I would definitely recommend this course.

Member's Profile
Advertised time of 2 hours did not agree to the time shown once enrolled (2nd time I've noticed this happening; please adjust)

Anonymous Author
Another great course from Lynn Fountain! Full of excellent examples and real-world insight from a seasoned professional.

Anonymous Author
Another useful and great course that allows revenue accountants to apply scenarios to real world situations. Thank you!

Anonymous Author
Overall a good revision but more often it feels like the instructor is just reading out the contents of the slides.

Anonymous Author
The scenarios were brilliant and allowed me to learn the material in an effective manner. Well done!

Member's Profile
The use of examples and repeat of important definitions really helps with learning the standard.

Anonymous Author
Very nicely explained concepts and appropriate examples to understand the topic in depth

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

Anonymous Author
was looking for some commentary on when volume discounts meet anticipated prices

Anonymous Author
Liked the detailed explanations of one topic. Wish there were more examples

Anonymous Author
I like that the refining topics are included in the last few courses.

Anonymous Author
excellent info and examples to better understand the concepts

Member's Profile
Good review of applicable concepts and terms. good examples

Anonymous Author
This was a good overview. I really liked the examples.

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 to Revenue Rec: Case Scenarios for Transaction Price2:57
  Transaction Price6:05
  Methods to Determine Variable Consideration7:43
  Continuing Exercise EV12:38
  Most Likely Amount5:18
  Constrained Variability7:45
  Constrained Example5:18
  Implied Variability5:21
  Non-Cash Consideration8:55
  Significant Financing Component7:42
  Volume Discounts11:20
  Revenue Rec: Case Scenarios for Transaction Price Full Video1:22:43
  Slides: Revenue Rec: Case Scenarios for Transaction PricePDF
  Revenue Rec: Case Scenarios for Transaction Price Glossary/IndexPDF