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This course is dedicated to Step Two of the revenue recognition model “Identify Performance Obligations”.  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, we are creating individual courses with multiple case scenarios that apply to the individual given steps.  This course applies to Step Two – Identify Performance Obligations.  The course includes the many considerations companies must take into account when identifying how many performance obligations may exist.  We review the concepts of distinct vs. non-distinct goods and services as well as goods and services that are distinct within the context of the contract.  We also discuss the concept of a performance obligation representing a material offer and how that should be accounted for. 

After taking this course, you should be able to effectively apply your understanding of Step Two 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.

Learning Objectives

  • Explore requirements behind step two of the revenue recognition standard “Identify Performance Obligations".
  • Identify differentiation between distinct and non-distinct goods/ services.
  • Explore examples of both distinct and non-distinct goods/services.
  • Identify performance obligations (PO) for the following scenarios:
    • Distinct goods/services
    • Non-distinct goods/services
    • Intellectual property
    • Bundled goods/services  
Last updated/reviewed: June 25, 2021

Included In Certifications

This course is included in the following Certification Programs:

16 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
  16. Revenue Recognition COVID Implications

16 Reviews (67 ratings)Reviews

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 felt a bit redundant. There was some new information but a lot was repetitive and actually made me question what I felt I had already understood. Needed to review the supporting material and instructors on demand course a few times to untangle my thoughts.
Member's Profile
The learning objectives were very well communicated with simple examples! The major agenda items were very easy to navigate. Would definitely recommend to others for reference and review.
Anonymous Author
Another great course from Lynn Fountain with excellent examples, including a variety of industry examples. For those looking for more reality, this is an informative webinar.
Member's Profile
Examples in this course and reiteration of certain concepts and definitions covered in previous sessions really helped with the better understanding and learning.
Member's Profile
good recap or prior courses on performance obligations. I would recommend adding more case studies to make this course complimentary to the more detailed course.
Anonymous Author
This was a tough course, but well worth it! The examples really illustrate how to properly apply the standards to a wide variety of scenarios.
Member's Profile
Great course, excellent examples and a wealth of information is provided through this course. I would highly recommend it.
Member's Profile
This course provided great examples that made it clear to me how to apply distinct / non distinct to my own situation.
Anonymous Author
considering it a single bundle if the intention is to provide all as one was a bit shocking
Anonymous Author
Great examples and very well explained topics . Easy to understand the subject
Anonymous Author
Decent guide to case scenarios for performance obligations. Will be useful.
Member's Profile
Good examples outlining performance obligations which is such a tricky area.
Anonymous Author
Great examples were used and the course is explained thoroughly.
Anonymous Author
Really great examples and breakdown of PO. This was helpful.
Anonymous Author
Good look at specific contract types that are less common


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

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
  3:06Introduction to Revenue Rec: Case Scenarios for Performance Obligations
  11:34Performance Obligation
  7:46Distinct Good and Services
  10:16Example One: Multiple Performance Obligations
  11:03Example Three: Distinct Goods/Services
  10:57Non-Distinct Goods/Services
  6:29Loyalty Programs
  3:54Determination of Distinct vs. Non-Distinct
  8:14Intellectual Property Revenue
  1:16:05 Revenue Rec: Case Scenarios for Performance Obligations
  PDFSlides: Revenue Rec: Case Scenarios for Performance Obligations
  PDF Revenue Rec: Case Scenarios for Performance Obligations Glossary/Index