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The issuance of the new standard for revenue recognition finally happened in May 2014, and will replace the current guidance in US GAAP and IFRS for revenue recognition at the end of 2017 for public filers and at the end of 2018 for private companies, with early adoption available.

The new revenue rules represent a paradigm shift from a rules-based to a principles-based approach and will impact several facets of a business. Companies will need to adjust policies and design new processes to ensure compliance.

Join Jeff as he: 

  • Walks through the 5 Steps to revenue recognition in a methodological manner using specific examples to drive home the technical application of the new guidance.
  • Dives deep into the 5 Steps of the new standard in a practical manner and specifically outlines the key things that potentially won’t be different vs. slightly different vs. significantly different.
  • Delivers insights that go well beyond recapping the highlights of the new guidance to offer actionable advice in designing and executing on policy changes

Intro Video Transcript

Welcome to Topic 606, Revenue from Contracts with Customers. This is an introduction to the new standard for revenue recognition. I'm calling this Rev Rec 3.0 a revolution because it is certainly a revolution in accounting standards, nothing like we've ever seen before, at least in my career lifetime. I would call Rev Rec 1.0 the original rules that the SCC put in place back in the 30's after the stock market crash. I would label Rev Rec 2.0 as the rules that we've had implemented over the past 15 to 20 years with basic Rev Rec and SAB 104, with software revenue recognition with SAP 9072. Multiple element guidance in the EITF 00-21. Ultimately this is another level of evolution in the U.S. gap with respect to revenue recognition.

My name is Jeff Tchir, I'm currently the Director of Revenue at Silver Spring Networks. I also manage a consulting group that focuses on nothing but revenue recognition matters and I also give webinars and seminars, just like this. Here is what you will hear from me today. This standard has been a long time coming. It goes back way more than a decade and I'll talk about the history of it. There's actually a methodology to the madness and to the five steps that I will take you through. We will have to make more judgments as a principles based standard. The standard will require more disclosure in the judgments and estimates that we do make.

The impact on various business models will vary and the impact will vary even within your business model. Part of the reason your business model is successful is because it is somewhat unique. The standard will impact everybody just a little bit differently. You will notice some things will stay the same, some things will be a little different and some things will be actually a lot different and I'll take you through some of those differences. I want to emphasize that your business model, not the accounting standards, should drive the design and execution of any processes, procedures and policy changes you need to make to implement this new standard. I want to say that again, your business model is successful for a reason, don't let this accounting standard drive you to a business model that will ultimately be unsuccessful to you.

So first, I'm just going to talk a little bit about the history of the Joint FASB/IASB Project. That's the Financial Accounting Standards Board in the U.S. and the International Accounting Standards Board out of the U.K. We'll talk about the core principle, again that principle is based approach, it does have a core principle that's pretty easy to understand. And then while I go through the five steps of the new standard, I will also talk about some the implementation issues you may want to consider when you learn more about the standard and ultimately implement it.

 

Learning Objectives

  • Identify the relevant changes in the new revenue recognition guidance for your company
  • Identify the technical aspects of the principal steps of revenue recognition in the new standards
  • Discover the implications of “rules-based” and “principles-based” revenue recognition standards

191 Reviews (517 ratings)Reviews

4
Member's Profile
Solid overview - I think the examples could have been more illustrative if the speaker specifically showed the differences between past rev rec practice vs future rev rec requirements.
5
Member's Profile
Spoke clearly covered good intro to the topic enjoyed the slides
4
Anonymous Author
i enjoyed the class and Jeff did a good job explaining the topic. The presentation was so quick that I found myself rewinding the videos to grasp the information. I got lost a bit in the Standalone Selling Price section and had to replay the section on Estimation methods for a better understanding of the process - I will probably go over it again at a later time for more clarification.
5
Member's Profile
It was a great course and honestly I was not aware of this topic, so the learning was enhanced. Though I am not sure I understood, it when the trainer mentioned that the transaction price has to be marked to market every year for the contract. What happens in the case of a fixed price contract with multiple elements.
4
Strong presentation; my only complaint is the amount of time spent on introduction of the topic (which may be completely appropriate for someone with less experience in this area). My preference would be for another example or two. Note; I fully intend on revisiting this course as it clearly draws out the topic.
5
Member's Profile
Excellent course. Jeff really knew the material inside out. His examples were great. I listened to the course just once and scored 100% on the exam questions which shows the material was presented very effectively. Thank you Jeff. This was a great course and an awesome presentation!
4
Member's Profile
This class was to the point and easy to follow. I had trouble with some of the videos, they'd play for a few seconds and then stop, as if fast forwarding to the end. I tried numerous times to get the videos to play again, sometimes successful, sometimes the problem wouldn't go away.
5
Member's Profile
The presenter not only was able to effectively communicate the new standard, but also to tie it to the other standards we've been working with for the past couple of decades, which will certainly help with planning and implementation when the new standard is implemented.
5
Anonymous Author
It's a great course for someone who is not too familiar with what is in the standard. The examples provide reinforcement of understanding of each of the concepts discussed. The instructor does a great job in putting accounting concepts in plain English.
4
Anonymous Author
A few more examples would be nice, but would probably require more time, as the other material was also important. Maybe this could be bonus material that is available to those of us who want it, but not required for completion of the course.
5
Member's Profile
Implementation is a huge challenge for the company where I work. One piece of very helpful information that I got from the presentation was that estimation methods are okay if there is no observable standalone sell price
5
Member's Profile
I think the standard was released in May it would be nice to have a quick appendix to see if anything may have changed. The instructor was great on what can be considered a very involved topic.
4
Member's Profile
Good use of examples that add color to the concepts being discussed. Not quite 5 stars as the background/history section could have been made more brief, but very useful nonetheless.
4
Member's Profile
Concise and clear on the similarities and differences between the [proposed] standard and historical literature. A follow up since the release date of this course would be welcome.
5
Anonymous Author
As somewhat of a novice, I think that the instructor gave enough background and explanation for me to understand the course and gain a lot of insight as to the new Rev Rec Standard
5
Member's Profile
He is clearly experienced, good connection between theoretical and practical. Explained well - I audited a few software companies years ago so a lot of this sounded familiar
5
Member's Profile
very easy to follow. great speaking points and examples to apply the knowledge after each section. speaker was easy to understand and pdf's of course content very helpfull
4
Anonymous Author
Good video - nice use of examples. May be more beneficial to illustrate the revenue recognition for examples based on the old vs. new standard to highlight differences.
4
Member's Profile
Course is easy to use and the instructor was very knowledgeabe. Also the material was easy to follow and kept me engaged while the instructor went through the course.
4
Member's Profile
A good refresher course on rev recognition. Documenting rev rec policy is important but should be reviewed by external auditors so that restatements can be avoided.
4
Anonymous Author
would be nice ti amplify the audio. I like to listen when I am on the treadmill...had it all the way up and still not clear much of the time. Content overall good.
4
Anonymous Author
Well presented, but (and maybe this is because of the way the standard was written), all of the examples seemed to end in "it depends" rather than a clear answer.
5
Member's Profile
Pretty good summarization of the new 606 principles and a good summary of where it differs from the earlier standards with insightful examples in each chapter.
4
Member's Profile
Very straight forward and clear. Would be good to have a further course on disclosure requirements. Some slides could have been move through at greater pace.
4
Member's Profile
overall this course was effective in providing a high-level overview of the new standard. Examples that were given were clear to understand and follow along.
4
Very intensive and complex subject. Mr. Tchir does an admirable job of trying to simplify the issues surrounding the new Rev.Rec. proposed standards.
4
Member's Profile
The topic was very well organized. It was concise and clear. I wish the presenter showed more energy in his voice. He seemed to drone on at times.
4
Anonymous Author
While outside of my day to day responsibilities, the presentation was straightforward and easy to understand the concepts. Concise and clear.
4
Anonymous Author
It is very informative and straight-forward, giving examples along the course are great to illustrate on how things work. Worth the time.
5
Anonymous Author
Great course - instructor is obviously very knowledgeable but translates it in a very easy to understand way with practical examples.
5
Member's Profile
Well organized course. I was surprised at how well it fits with my own lecture. Anyone teaching revenue recognition would benefit.
5
Member's Profile
Very well done. Hats off to Jeff for taking a complex area and delivering an easy to understand Revenue Recognition 101 course.
3
Anonymous Author
Good especially the cases, but had to go over course over and over again to understand course i am not really familiar with it.
5
Member's Profile
Very well presented and the instructor clearly take you through some fairly complex theories with practical real world examples.
3
Anonymous Author
Would have liked instructor to go into more detail as to the assets and liabilities required to be entered under this new code.
5
Member's Profile
I really liked Jeff's method of breaking down this complex subject, into chewable bits of info. Very clear and well explained.
5
Member's Profile
Understanding the five steps behind the Core Principle is well explained in this course. The examples provided further clarity.
4
Member's Profile
Good overview. Could have spent less time on background and instead other broadly applicable topics, like transition methods.
4
Member's Profile
Clear concise guidelines for applying the new rules. I would have liked a few more examples outside of the software industry.
4
Anonymous Author
Clear and logical structured. Would have been useful with a "summary" example with numbers and going through all five steps.
5
Member's Profile
Nicely summarized presentation on the basics of revenue recognition under the new standards. Thanks for putting it together.
5
Anonymous Author
Interesting course and a very broad topic.Well presented. May be some more examples would help to understand it much better.
4
Anonymous Author
Good course for a tricky subject. Need to go over this material more in depth but this is a good intro for the moment.
5
Member's Profile
Great presentation of the new standards. The examples were real world scenarios that helped to solidify the concepts.
5
Anonymous Author
GREAT course that hits all the major points of 606. I'm going to keep repeating the course until I have it memorized!
4
Anonymous Author
Course was good overview of new guidance. Would be good to know when this was recorded as it may be out of date.
4
Member's Profile
Thank you very much. very good introduction to new revenue recognition. next time I hope to have more examples.
5
Anonymous Author
Helpful interpretation and application of the new rev rec rules. Examples of application scenarios are useful.
4
Member's Profile
Good overview of 606. Well paced and good use of examples. I would take another course from the Jeff Tchir.
4
Anonymous Author
Presenter did a better job with this presentation and support material for retention as well as exam success.
4
Anonymous Author
Good information. Would like for specifics based on industry to make it more applicable to each situation.
4
Anonymous Author
Ensure you understand the vocabulary related to this topic, especially the 4 Criteria and the 5 Steps.
5
Member's Profile
Excellent presentation covering the highlights of the new topic. I appreciated the examples provided.
5
Anonymous Author
One of the better courses I've seen - detailed and applicable. Good food for thought on key issues.
5
Member's Profile
The simple approach to discuss the steps needed to be considered when applying the new standard
5
Anonymous Author
This is very technical but the presenter did a good job of explaining it in the time allowed.
5
Member's Profile
I thought the course was very informative and the instructor included interesting comments.
5
Member's Profile
Excellent course, with not a moment wasted. Full of valuable information with some examples.
5
Anonymous Author
Great overview with enough details to ensure understanding, but not overwhelm the audience.
4
Member's Profile
Easy to listen to. A few more examples may have been helpful to understand changes fully.
5
Anonymous Author
Clear descriptions from the presenter and follow-up examples answers the questions I had.
4
Anonymous Author
There is so much information to cover and understand. I liked the outlines and examples.
5
Member's Profile
direct and to the point with enough details to give me an understanding of the ruling.
5
Member's Profile
It is an excellent course. A great refresher, and a great way of learning the new 606.
5
Member's Profile
I liked how easy it was to follow the steps and liked the examples that were presented.
5
Member's Profile
The speaker made the topics interesting and made it easy to keep focus on the subject.
5
Anonymous Author
Would have liked this course to have been longer in order to truly absorb the material
5
Member's Profile
Easy to follow lessons split up into simple segments. Good review and test questions.
5
Member's Profile
Clear and concise information . Appreciate the flexibility to proceed at own pace.
4
Member's Profile
Pros - It is easy to follow Cons - Not enough examples to demonstrate the ideas
4
Anonymous Author
More examples would be great for practical application of the learned objectives.
5
Member's Profile
it was quick and easy and broken into small parts which make it easier to follow
5
Member's Profile
Terrific presentation of a critical topic, with applicable real world examples.
4
Member's Profile
Revenue rec seems to be one of the most heavily discussed topics. Good overview
Anonymous Author
Good Introduction. Would prefer more example or highlight areas of difference.
5
Member's Profile
Very informative, a great supplement to published literature, delievered well.
4
Member's Profile
Lots of information, but provided a good start to dive in deeper to the topic.
5
Anonymous Author
Good overview at a high level, don't expect a deep dive into the details.
5
Member's Profile
This is a dismal topic that was covered about as well as could be expected.
4
Member's Profile
great information for a contracts director who works closely with finance.
5
Member's Profile
Good course that outlines the basics of the revenue recognition standard.
5
Member's Profile
Concise overview of the essentials of the new revenue recognition rules.
4
I very much enjoyed the examples and would have liked to see a few more.
5
Anonymous Author
Good course, excellent examples that help understand the subject matter
3
Member's Profile
Clear and concise information, but not the most engaging presentation.
5
Member's Profile
Good course! Straight to the point and easy to follow a complex topic.
5
Anonymous Author
Very good slide deck to take away as notes. Thanks for a solid course.
4
Member's Profile
Instructor was good at describing the details of this complex topic
4
Member's Profile
short and sweet...no wasted time...gets right to the subject matter
4
Anonymous Author
Good overview of what appears to be a long, complicated, standard.
5
Member's Profile
Good coverage of the definitions required for recognition factors.
4
Member's Profile
Good presentation, provides an insight into the new FASB standards
5
Member's Profile
Like the examples and Jeff's comments about the examples as well.
3
Anonymous Author
Nice overview; would have like a bit more in depth coverage.
4
Anonymous Author
Good course on the core concepts of a very lengthy subject.
5
Anonymous Author
Very good overview. Please update for the final standard.
4
Anonymous Author
Good introduction to the new revenue recognition standard.
4
Member's Profile
Good quick course to get a solid foundation for Topic 606.
5
Member's Profile
Good instructor. Clearly an expert. Nice contribution.
5
Member's Profile
very helpful for understanding of rev rec new standards
5
Anonymous Author
Very well-informed, with excellent illustrative examples.
4
Member's Profile
very easy to understand explanation of a complex process
5
Anonymous Author
I liked how it compared the new standard to the old one.
5
Anonymous Author
Valuable the history/l=timeline of the Core principle.
5
Anonymous Author
Very effective discussion with good real life examples
5
Anonymous Author
simple to follow and understand, easy / good examples
5
Anonymous Author
Very concise presentation of a large complex subject!
5
Member's Profile
enthusiastic presenter who explains things logically
5
Anonymous Author
Excellent instructor--very clear with sound examples
4
Anonymous Author
Very good overview with thought provoking questions
4
Anonymous Author
I liked the examples given during the presentation.
4
Member's Profile
Very nice overview of the history and the standard.
5
Anonymous Author
Presenter is clearing knowledgeable on this topic.
5
Anonymous Author
Great presentation. Very informative and concise.
4
Member's Profile
Dry but relevant subject that was well presented.
5
Member's Profile
Slides very helpful. Information very thorough.
4
Anonymous Author
The material was concise and practical. Thanks!
4
Member's Profile
Good basic explanation of new revenue guidance.
4
Member's Profile
Excellent review of contract basics. Loved it!!
4
Anonymous Author
Enjoyed the course. It was very informative.
4
Anonymous Author
The audio was poor quality on the introduction.
5
Member's Profile
Very good course hoping to find a 2.0 version.
5
Member's Profile
The class delivery was efficient and effective.
4
Anonymous Author
a good introduction to new revenue recognition.
4
Member's Profile
Very insightful as to the changes forthcoming!
5
Member's Profile
Material and presenter were both very thorough
5
Anonymous Author
This was well presented and meet my objective
5
Member's Profile
Thank you very much for this valuable course.
4
Anonymous Author
Excellent intro to the new revenue standard.
4
Anonymous Author
good info, but a lot of writing on the slides
5
Anonymous Author
Very informative without being too detailed.
5
Member's Profile
Good high level review of ASC 606 changes.
5
Member's Profile
5 steps nicely laid out with good examples
4
Member's Profile
A good overview of the new upcoming rules
4
Anonymous Author
A lot of information in a concise format
4
Member's Profile
Excellent explanation of complex topic.
4
Member's Profile
very informative and easy to understand
5
Member's Profile
Excellent introduction and well paced.
4
Member's Profile
GOod course, thorough yet not too long.
4
Member's Profile
Great review and informative examples.
4
Anonymous Author
Real world examples are very helpful!
5
Anonymous Author
Quick and easy to understand overview
5
Member's Profile
Concise and to the point presentation
5
Anonymous Author
best overview of ASC 606 in an hour
5
Anonymous Author
Great review of proposed standard
5
Member's Profile
A lot of information for one hour
5
Anonymous Author
Very knowledgeable presenter.
5
Member's Profile
Well done. Easy to understand.
5
Anonymous Author
Good Brief on the new standard
5
Anonymous Author
Nice organization of content.
Anonymous Author
The information is valuable.
5
Anonymous Author
Clear, susinct, cutting edge.
5
Member's Profile
Great overview of the 5 steps
4
Member's Profile
Easy to follow and nice/short
4
Member's Profile
good Explanation and examples
5
Anonymous Author
Concise high level overview.
5
Anonymous Author
examples given are helpful
5
Member's Profile
Good overview to the topic
4
Anonymous Author
It was a very good course
Member's Profile
Should have more example
4
Member's Profile
Well prepared delivery.
5
Member's Profile
Very and easy to follow
5
Member's Profile
Good overview of 606.
5
Member's Profile
I like the examples.
4
Member's Profile
good basic overview
5
Member's Profile
Very informative!
5
Anonymous Author
Well explained.
5
Anonymous Author
Good overview.
4
Member's Profile
Easy to follow.
4
Member's Profile
Well presented
5
Anonymous Author
Great overview
4
Anonymous Author
Great overview
5
Member's Profile
great course.
5
Member's Profile
good overview
5
Member's Profile
Good overview
5
Member's Profile
Nice overview
4
Member's Profile
Good overview
5
Anonymous Author
Good course.
5
Anonymous Author
Informative.
4
Member's Profile
informative
5
Member's Profile
great topic
4
Member's Profile
Nice thanks
3
Member's Profile
Good course
3
Anonymous Author
Challenging
3
Anonymous Author
very useful
4
Anonymous Author
Good class
5
Member's Profile
great!
5
Anonymous Author
quick
4
Member's Profile
Good
Anonymous Author
45
4
Member's Profile
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Prerequisites

Course Complexity: Intermediate

Prerequisite: Basic proficiency in US GAAP accounting and a basic revenue recognition or an equivalent understanding from their relevant practical experience. No preparation is required.

Advanced Preparation: None

 

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 ext. 106, or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Lesson 1: The Joint FASB/IASB Project
  7:53The Joint FASB/IASB Project
Lesson 2: The Core Principle
  3:31The Core Principle
Lesson 3: The Standard and Implementation
  11:27Identify the Contract(s) & Identify the Performance Obligations
  9:02Determine the Transaction Price
  11:21Allocate the Transaction Price & Recognize Revenue Upon Satisfaction of Obligation
CONCLUSION
  1:53Recap and Closing
Continuous Play
  47:53Topic 606 - Revenue from Contracts with Customers: An Introduction to the New Standard for Revenue Recognition
SUPPORTING MATERIALS
  PDFSlides: Topic 606
  PDFTopic 606 Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM