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Lynn Fountain, CPA, CGMA, CRMA, MBA, Consultant, Author, Trainer
Former Chief Audit Executive for two global companies, expert in SOX, COSO, ERM and corporate governance frameworks. Nationally recognized trainer, speaker published author.
This instructor has 191 courses »To Access This Course:
This is the second course in the ongoing series evaluating the (ASC 606) Revenue Recognition Standard. This course relates to step two of the standard “Considerations for Performance Obligations”. Part 1 evaluated the concept of distinct and non-distinct goods and services and how they related to performance obligations.
Properly identifying performance obligations is a critical step in the five-step revenue recognition model. It is a step that must be completed at the inception of the contract and prior to moving on to step three of the model. As discussed in segment one on performance obligations, there are many types and variations of obligations and as such, management will be required to utilize significant judgment when applying this step. However, it is important that the judgment be supported by considerations of the proper factors.
The course further evaluates areas that impact performance obligations. We utilize multiple examples from various industries to illustrate the considerations that must be evaluated in line with both identifying performance obligations and allocating the transaction price appropriately.
Learning Objectives
- Explore the concept of revenue recognition related to performance obligations that may involve components such as:
- Options to purchase additional goods/services
- Identifying material rights
- Shipping and handling charges
- Identify and examine factors impacting performance obligations including:
- Principal vs. agent status
- Warranties
- Options for additional goods and services
- Non-refundable up-front fees
- Stand-ready obligations
- Rights of returns
Last updated/reviewed: June 6, 2021
Included In Certifications
This course is included in the following Certification Programs:
16 CoursesRevenue Recognition Certification
- Revenue Recognition Standard Overview
- Revenue Recognition: Identify The Contract Part 1
- Revenue Recognition: Identify The Contract Part 2
- Revenue Recognition: Performance Obligations Part 1
- Revenue Recognition: Performance Obligations Part 2
- Revenue Recognition: Transaction Price Part 1
- Revenue Recognition: Transaction Price Part 2
- Revenue Recognition: Allocating Transaction Price
- Revenue Recognition: Recognize Revenue
- Revenue Recognition: Scenarios For Identify The Contract
- Revenue Recognition: Scenarios For Performance Obligations
- Revenue Recognition: Scenarios For Transaction Price
- Revenue Recognition: Scenarios For Transaction Price And Recognize Revenue
- Revenue Recognition: Case Scenarios Part 1
- Revenue Recognition: Case Scenarios Part 2
- Revenue Recognition COVID Implications
56 Reviews (236 ratings)Reviews
Anonymous
(Vice President and Corporate Controller)
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.
Brett Peterson
(Consultant at DLC Group)
some of the detailed issues touched upon (contract modifications for sure) were not really fully explained. specific to contract mods, I did not feel the accounting example with the numbers/amounts was sufficiently explained to help us understand what was happening and why the percentages of allocation did not add up to 1
Alvin Scott
(Revenue Operations Analyst at SurveyMonkey)
Very very strong course. The material and examples are relatable and easy to understand, which make the bigger picture of considerations for performance obligations much easier to understand. The section on Principal vs Agent was critical for me to understand in my current role. Great course!
Anonymous
(Controller)
As the concepts get more complex and the situations more technical, the instructor keeps them understandable through clear descriptions and the use of examples to demonstrate proper interpretation of the standards.
Wendy Jones
( at Harry and David)
This course was easy to understand and provided a lot of good information about identifying service obligations. The slides were consistent with the presentation and helped to cement the ideas presented.
Anonymous
(Sr. Director of Cost Management and Comp..)
Lots of moving pieces to this description of performance obligations as they relate to options, warranties and other non-product transfers. Examples were simplistic, but explained the points well.
Anonymous
()
The course were a little easy to confused,and thanks for Ms.Lynn' clear and detailed examples to explain the lots of differences between the concepts. The courses are very helpful to my works.
Anonymous
(Project Manager)
The course provides a deep dive into step 2 which is one of the most important steps as the company needs to identify all performance obligations prior to determining the revenue recognition
Anonymous
()
This is a very interesting course on performance obligation with respect to the new revenue recognition standard. The course is presented in a clear manner and contains interesting examples.
Lauren Reid
( at Clari)
informative, gets the overall concept done. Wish there were more relevant examples and specific calculations or show how to set up a workbook. Disappointed the instructor isn/t a CPA
Anonymous
(-)
Another excellent course presented by Lynn Fountain regarding the new revenue recognition standard - full of examples and information that serve to build a foundation of knowledge.
Jay Bineau
( at Seigler & Tweedlie)
this course was the best so far since it had more useful examples. Real life examples are very much needed in revenue recognition since the subject matter can be somewhat abstract
Anonymous
()
Worthwhile broad overview of the topic which was well presented. The materials were in the bottom quartile of courses on this website (e.g no page numbers) but were useful.
Anonymous
(Drone)
All of the sections on performance obligations presented in this course provide a great overview of changes. The examples for material rights were very very helpful
Linda Forde
(Owner at The Forde Firm, LLC)
These are very specific materials that need to be understood to properly handle situations affecting performance obligations. Great course but be ready to focus!
Mandy Wong
(Consultant at DLC Group)
Overall good webinar. The instructor, however, jumped back and forth between the slides during the first section, which made it a bit hard to follow.
Dowton Martin
(Accounting and Finance Consultant at DLC Inc)
The course is very informative and provides great insight into the considerations for performance obligations. I would highly recommend this course.
Anonymous
(Consultant)
I appreciate the examples walking through different scenarios and showing the related math. This helps drive home the theory behind the guidance.
Anonymous
(Sr Revenue Analyst)
The examples of calculating the SSP and determining the deferred amounts are not clear. I watched couple of u tube videos to understand it.
Anonymous
(VP Finance)
This is another great course to be familiar with Step 2 of the new revenue recognition standard on how to interpret Performance Obligations.
Anonymous
(Sr. Accountant)
The examples that were given by Lynn were very accurate and easy to understand. I feel that I am truly getting a grasp of the material!
Anonymous
(GL Accountant)
This course was a good addition to part 1. There were clear examples provided and the examples were easy to follow.
Anonymous
(Consultant)
The material is well organized. Provided many good examples. The instructor explained the concepts very well.
Anonymous
(Revenue Accountant)
This is a thorough course discussing the Performance Obligations. The slides are an excellent reference.
Anonymous
(Chief Financial Officer)
Using well thought out examples I thought the presenter did an excellent job of presenting the material.
Matt Madison
( at N/A)
This is another excellent revenue recognition course. I really like this series of courses. Thank you!
Kristine Vuncanon
(Revenue Analyst at Blackhawk Network)
Material Rights section needs cleaning-up & elaboration. Numbers didn't look right in all slides.
Anonymous
(Senior Internal Auditor)
The program materials were relevant and contributed to the achievement of the learning objectives.
Anonymous
(Accountant II)
What you would expect for a foundation level course. The questions proved to be a nice refresher.
Anonymous
(NA)
Very informative and interesting course. Would highly recommend it. Nicely explained concepts.
Craig Campbell
( at National Reconnaisance Office)
Course covered the subject matter well. Gave a good overview of subject matter. Learned a lot.
Erik Hanner
(Consultant at DLC Group)
Good class, great slides and an exciting instructor. This is an important class for Rev rec.
Halina Kovel
(Sr Revenue Accountant at Yelp)
very good examples that help to understand very complex rules with the new rev rec standard
Derek Ettinger
( at GP Fund Solutions, LLC)
Lynn hits all the key points and provides excellent examples to help reinforce concepts.
Anonymous
(Director of SEC Reporting)
The course provide a good high level summary of performance obligations under ASC 606.
Ann Marotta
(Consultant at DLC Group)
A lot of information in this module. Good examples included but I could use even more,
Anonymous
(-)
Nice overview of revenue recognition principles related to performance obligations.
Roanna Alahakkone
(accountant at ABC)
Really appreciated the examples to illustrate the accounting of the transactions
Jacinth Vidinha
(Controller at Madden Media)
Another well-done course with straightforward instruction and plenty of examples
Joshua Bourquard
(Accounting Manager Financial Reporting a.. at TPx Communications)
Lots of good examples and real life basis. Overall good lecture on this topic.
Anonymous
(Consultant)
this was one the tougher sections, so the multiple examples really helped
Angela Duncan
(Consultant at DLC Group)
Good examples for material rights and principle vs agent considerations
Sergiy Korytko
(Revenue Manager at Instacart)
Good overview of these new standards with practical examples. Thank you.
Anonymous
(Associate Director)
This course provided a good overview of Step 2, performance obligations.
Anonymous
()
Thanks Lynn, I am quite satisfied with the info. You are the best.
Anonymous
(Sr. Revenue accountant)
Better examples were used. Very useful and informative module
Jim Ahern
(Principal at AFM)
the course material was clear and the examples were helpful
Katherine Hart
(None at Not Applicable)
Just finished part 1 and learned even more here in part 2!
Snejana Vedmenskiy
(Senior FP&A Operations Manager at General Electric)
Great course, offers some good examples, highly recommend.
Anonymous
(Manager)
great continuation from part 1. great choices of examples
Sharon King
(Contractor at Self employed)
Another very thorough course provided by Lynn Fountain.
Anonymous
(Revenue Accountant)
Another useful course for revenue recognition training!
Anonymous
(CFO)
Pretty good overview given the nature of the material.
Victor Fuentes
(Manager at RSM)
great course on performance obligations, very thorough
Anonymous
(Self)
Helpful details and examples, appreciate the insight.
Chris Grimes
(Rules Master at Cisco)
Good overview of material rights. Lots of examples.
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 .