Instructor for this course

This course is dedicated to the evaluation of case scenarios related to Step Four and Five of the revenue recognition model.  Step Four entails “Allocating the Transaction Price to Performance Obligations”.  Step Five entails “Recognizing Revenue”.  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 includes the many considerations companies must take into account when determining how to allocate the transaction price to performance obligations and then move to the final step of recognizing revenue.  We review the concepts of allocation methods and methods to estimate stand-alone selling price.  We also discuss aspects involved in recognizing revenue including accounting for discounts, variable consideration and how to recognize revenue over time versus at a point in time.

After taking this course, you should be able to effectively apply your understanding of Step Four and Five 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

  • Identify important components involved in Step Four – Allocate transaction price to Performance Obligations (PO).
  • Explore the various estimation approaches for determining stand-alone selling price (SSP) outlined by the standard.
  • Identify how to allocate discounts between performance obligations.
  • Explore concepts of variable consideration.
  • Explore elements of Step Five – recognize revenue.
  • Identify how to recognize revenue over time vs. at a period of time.
  • Identify methods for measuring progress towards completion of a project including input method and output method.
  • Explore concepts of enforceable right of payment.
  • Identify components necessary when a right of return exists.
Last updated/reviewed: November 18, 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

18 Reviews (84 ratings)Reviews

Anonymous Author
The review here was enhanced by coverage of additional nuances of the standard, such as the discussion of the effect of consideration of determination of market share, expected profit margin, and distribution channel on the adjusted market estimation approach. The additional examples are also helpful.
Member's Profile
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.
Member's Profile
There are so many practical and interesting examples in the course and I thought it was so funny to study the lesson. But I still think there are so enouth examples to practice the revenue recognition. Thanks for MS.Lynn's instruction.
Anonymous Author
I liked how the instructor went through multiple case scenarios, and then tweaked the facts to show how a small change can alter how transaction is allocated to performance obligations and how revenue is recognized.
Anonymous Author
Another great course from Lynn Fountain on the topic of revenue recognition. Well-presented and informative, this course combined with others in the series builds a solid foundation of knowledge.
Anonymous Author
Good course in reviewing Allocations with the different methods of SSP. Thanks for another useful course on the topic of revenue recognition!
Member's Profile
Great course and excellent material the video presentations were very informative. The examples were very helpful in understanding the topic.
Member's Profile
It is a good course to solidify your the knowledge, but it repeats a lot from previous sessions. I wish it had more examples instead.
Anonymous Author
This was a very informative course with lots of great information that will help me to apply ASC 606 standards in my current role.
Anonymous Author
This is an informative course on how Revenue should be recognized. The examples were very useful in understanding the topic.
Member's Profile
Liked the slides and its really helpful to have them to refer back to. Detailed explanation of revenue recognition methods.
Anonymous Author
Though more time consuming it might be helpful to offer at least a workable problem in the final exam area.
Member's Profile
Overtime vs. over time has different meanings. Please adjust your handouts accordingly.
Anonymous Author
clear and easy to understand lesson with plenty of examples to drive the points home
Anonymous Author
Good job in detailing out the information and showing how to apply them in practice.
Anonymous Author
Well structure, well presented, contained good information to know.
Anonymous Author
Appreciate the continued refinement of previously covered topics.
Member's Profile
Good examples and discussion on allocating price to obligations.


Course Complexity: Advanced

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 .

2 QuestionsCourse Questions and Answers

User picture

Dear Mrs. Fountain,
Regarding the recognition of revenue, I have a PO for 02 same instruments, each instrument is independent from each other, only same pricing deal. Our customer requested to stage the shipment that one instrument ship in Q3 and the second one is to be shipped in Q4. We are in Q3 close, can we recognize the revenue for the first instrument that we already shipped?
Sincerely yours,
Han Vu

Member's Profile

I am sorry but Illumeo does not allow us to provide consulting advice. I can only speak to questions directly related to course material

Course Syllabus
  3:34Introduction to Revenue Recognition: Case Scenarios for Allocate Transaction Price & Recognize Revenue
Case Scenarios
  16:03Example Adjusted Market
  7:03Expected Cost Plus Margin
  11:05Residual Approach
  9:50Variable Consideration
  15:22Recognize Revenue Overtime
  9:02Methods for Recognizing Revenue Overtime
  7:41When Output and Input are Inappropriate
  8:08Recognize Revenue at a Point in Time
  1:37:50Revenue Recognition: Case Scenarios for Allocate Transaction Price & Recognize Revenue
Supporting Materials
  PDFSlides: Revenue Rec: Case Scenarios for Allocate Transaction Price & Recognize Revenue
  PDFSlides: Revenue Rec: Case Scenarios for Allocate Transaction Price & Recognize Revenue Glossary/Index