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On May 28, 2014, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) issued converged guidance on recognizing revenue in contracts with customers (ASC 606).  The objective of the guidance is to establish principles to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue from contracts with customers.  The new guidance provides several benefits to financial statement users.  Entities applying the new standard for contract revenue recognition will follow five steps:

  • Identify the contract with the customer
  • Identify performance obligations
  • Determine transaction price
  • Allocate transaction price to performance obligations
  • Recognize revenue when each performance obligation is satisfied

Although these steps may seem simplistic at the surface, within each step are multiple components and considerations users must be aware of.  This course will delve into the many concepts involved in Step One:  Identifying the contract.

The course utilizes many examples from numerous industries to enhance learning of the various concepts.

Learning Objectives

  • Recognize how elements of the new revenue recognition standard differ from the previous standard.
  • Explore various criteria in the step “Identify the Contract" including:
    • Approval/commitment of parties
    • Identification of rights of parties
    • Payment terms can be identified
    • The contract has commercial substance
    • Collection is probable
  • Identify when a contract modification requires a new contract or can be combined with the original contract.
  • Explore accounting for non-contract modifications.
  • Explore accounting for contract modifications.
Last updated/reviewed: November 26, 2019

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesRevenue Recognition Certification

  1. Revenue Recognition Standard Overview
  2. Revenue Recognition: Identify The Contract Part 1
  3. Revenue Recognition: Identify The Contract Part 2
  4. Revenue Recognition: Performance Obligations Part 1
  5. Revenue Recognition: Performance Obligations Part 2
  6. Revenue Recognition: Transaction Price Part 1
  7. Revenue Recognition: Transaction Price Part 2
  8. Revenue Recognition: Allocating Transaction Price
  9. Revenue Recognition: Recognize Revenue
  10. Revenue Recognition: Scenarios For Identify The Contract
  11. Revenue Recognition: Scenarios For Performance Obligations
  12. Revenue Recognition: Scenarios For Transaction Price
  13. Revenue Recognition: Scenarios For Transaction Price And Recognize Revenue
  14. Revenue Recognition: Case Scenarios Part 1
  15. Revenue Recognition: Case Scenarios Part 2

58 Reviews (247 ratings)Reviews

4
Anonymous Author
Когда весь мир движется в сторону международных стандартов финансовой отчетности, америка выпускает свои собственные стандарты. Надеюсь, что мой кругозор расширился до невообразимых размеров!
5
Anonymous Author
Everything is making sense but I guess what I'm struggling with is how to identify the "differences" between ASC 606 vs previous version. I felt like all the things that you said existed before. I was wondering if there is a summary/table available where I can clearly see the difference in transaction treatment between ASC 606 and the old version.
4
Member's Profile
The new revenue recognition guidance is clearly and carefully discussed and this is a good overview. However, more compare/contrast could be particularly helpful when thinking about modifying revenue recognition practices. The instructor thorough and very clear. I also really like that she connects concepts to underlying principles/definitions.
4
Member's Profile
Lynn does an excellent job in taking her time explaining the concepts of the new Revenue Recognition standard. At times she can be a little slow in the pace of the presention, but she does cover it in fair detail. I would have liked to see some financial reporting implications, journal entries, etc. Overall a great introduction to the topic.
5
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
Anonymous Author
the course was a little bit confused, and after I listened to the course, I still am a little unfamiliar with the revenue recognition step 1,and do not know the first step in getting started to recognize revenue. Hope the language be more clear!
4
Anonymous Author
There were lots of great examples that helped make the training easier to understand. It was also good that the this topic has been broken down into bite size pieces making it easier to digest and gain a better understanding of the material.
5
Anonymous Author
The instructor does a great job of providing additional commentary to the training. She gives real life, easy to follow examples that provide clarity on the topic. Overall a great presentation on a deep dive into Step 1 of ASC 606.
5
Member's Profile
A very detailed overview of the requirement and considerations for identifying the contract. I liked all the examples. The presentation was very well organised, concise and to the point.
4
Anonymous Author
The presentation was clear and concise - very good presenter. The subject matter was dry - to no fault of the presenter. More audience engagement would have been appreciated.
5
Anonymous Author
This course was a refresher of "Overview of Complying with the ASC 606 Revenue Recognition Standard". The instructor was very effective in presenting the course materials.
5
Member's Profile
The examples were excellent. there should be more multiple choice questions in the review questions then the final exam since there is a lot of material to fully understand
5
Anonymous Author
This course provided a fantastic overview of the fitst step in the new standard. I was pleasantly surprised at the way the old guidance and new guidance were presented.
4
Member's Profile
Compare contrast section is not well written. It could use more clear "here is what last standard looked like" and "here is the new standard" even a table would be great.
4
Anonymous Author
Good course overview of ASC 606 contract identification. Several examples were used to held illustrate when a contract (revenue) exists and when it does not.
4
Member's Profile
It appears that defining the terms are half the battle, so these courses that delve into each step are helpful for the overall understanding of the standard.
3
Member's Profile
wish there were more detailed examples. examples provided besides the one about wash trades seemed too basic to encounter in a real fortune 500 business
5
Member's Profile
Ms. Fountain is engaging and clear. Her examples make this complex subject easy to understand and apply to one's own industry. Highly recommended.
5
Anonymous Author
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5
Anonymous Author
Great course. Stated learning objectives were met. Program materials were relevant and contributed to the achievement of the learning objectives.
5
Member's Profile
The review was very informative and I gathered a significant amount of knowledge from the material. I was surprised at the depth of the course.
5
Member's Profile
Good and clear explanation and I can understand it clearly. But I suggest if there is subtitles in the video, then it would be even better.
5
Anonymous Author
Lynn's notes and lecture were very easy to follow and straightforward, and it really made learning the material very efficient for me.
3
Member's Profile
Presentation of information comparing and contrasting new standard to old one could have been organized better in slide presentation.
5
Anonymous Author
Very nicely explained with appropriate examples. The lecture is broken into parts which can be understood easily with no confusion.
5
Anonymous Author
I was pleased with the result of this course and plan to continue studying this issue. Thank you very much. Good day sir!
5
Member's Profile
Overview course with clear presentation and examples. Presents the segment of the new guidance knowledgeably.
4
Member's Profile
I really liked the course, because it in simple terms explains fundamentals behind the new revenue standard.
5
Member's Profile
The material was presented very effectively, and I'm looking forward to additional modules on this topic
5
Member's Profile
I liked the examples and the detail in using words and phrases strait from the text of the new standard.
4
Member's Profile
Good examples covering considerations for each step and very informative, especially on collectability
5
Member's Profile
A good follow-up to the overview course giving more detail and examples for contract identification.
5
Member's Profile
Great overview of rev rec criteria under a new guidance. Very good examples and clear explanation.
5
Anonymous Author
A very well presented discussion of the topic. Interesing examples helped to provide clarity.
5
Anonymous Author
Great deep dive into contract issues arising from ASC606. Gives great real-world type examples.
5
Anonymous Author
As usual, the presenter does a great job in explaining the material in an organized fashion.
4
Member's Profile
Could be shortened. The lessons seem to have been extended just for the sake of extension.
5
Anonymous Author
Useful course for those who work with revenue and all accounting professionals in general.
5
Anonymous Author
This course was fine for what it is. Very helpful to entry level revenue accountants.
5
Member's Profile
Very technical and informative. Really appreciated the industry insights at the end.
5
Anonymous Author
Course subject was clear. Examples are the most helpful in applying the knowledge.
5
Member's Profile
Very knowledgeable presenter and communicated in appropriate degree of detail.
5
Member's Profile
Good discussion of the criteria to identify whether or not a contract exists.
5
Anonymous Author
Helpful material and great examples. Simple language and easy to understand.
4
Member's Profile
Great substance here, Lynn really knows how to break the concepts down.
5
Anonymous Author
Very well instructed and really useful content within the class........
4
Member's Profile
clear and simple explanation of what a contract is for purposes of 606
5
Member's Profile
The slides included all the necessary info to understand this topic.
5
Member's Profile
Good introduction to the nuances of contracts with the new standard.
5
Anonymous Author
The course is easy to follow, the instructor has some good examples.
4
Member's Profile
I felt this course need more examples to serve different industries
3
Anonymous Author
It would be great if we can have more examples for SaaS products.
4
Anonymous Author
The course was very helpful in providing an overview of Step 1.
5
Anonymous Author
Very very helpful course on the new rev recognition standard!
5
Member's Profile
This course is very well explained and easy to understand.
5
Member's Profile
Very well laid out. Lots of examples to solidify points
5
Member's Profile
this course was very informative. great use of examples
4
Member's Profile
great, everyone should take it from controllers to CFO

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:33Introduction to Revenue Rec: Considerations for Identifying the Contract – Part 1
  4:08What is Revenue
  11:14Contrast With Previous Standards
  8:16Identifying The Contract
  3:49Step One: Contract Criteria
  15:40Approval and Commitment
  4:24Identifiable Terms
  2:52Commercial Substance
  14:51Collection Probability
CONTINUOUS PLAY
  1:08:48Revenue Rec: Considerations for Identifying the Contract – Part 1
SUPPORTING MATERIALS
  PDFSlides: Considerations for Identifying the Contract – Part 1
  PDFRevenue Rec: Considerations for Identifying the Contract – Part 1 Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM