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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.

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: November 25, 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

35 Reviews (201 ratings)Reviews

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
Course fully met expectations. Was well structured and presented.
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.
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.
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
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.
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.
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
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
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
Anonymous Author
Instructor gave great examples and summarized very well how to recognize revenue for goods/services satisfied over a period of 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
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.
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
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
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
More good info and considerations to determining timing of recognition.
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.
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
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
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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:05Introduction to Revenue Rec: Revenue Recognition
  4:21Recognize Revenue
  3:47Satisfied Over Time
  9:35Criterion 1
  5:38Example of Alternative Use
  12:58Recognize Revenue Over Time
  4:18Satisfied at a Point in Time
  4:42Measuring Progress
  7:32Example
  2:10Summary
CONTINUOUS PLAY
  58:06Revenue Rec: Revenue Recognition
SUPPORTING MATERIALS
  PDFSlides: Revenue Rec: Revenue Recognition
  PDFRevenue Rec: Revenue Recognition Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM