Revenue Recognition Certification

This certificate is designed to provide professionals the required understanding and insight into adequately complying with ASC 606 (Topic 606) “Recognize Revenue from Contracts with Customers”. The certificate courses utilize extensive examples to facilitate learning and allow the professional to practice their skills related to the five-step model. There are six separate courses that are specifically dedicated to practicing your knowledge and applying it to case scenarios specific to each step.

The new standard became effective December 2017 and it is critical companies properly re-evaluate their current revenue recognition process to ensure they are in alignment with the new standard and the five-step model as follows:

•Step One: Identify the contract with the customer
•Step Two: Determine performance obligations
•Step Three: Determine the transaction price
•Step Four: Allocate the transaction price to performance obligations
•Step Five: Recognize revenue

At the surface, the five steps seem simplistic. However, there are many considerations that should be considered within each step based on your process and industry. Transaction and industry specific revenue recognition guidance is eliminated. It is replaced with a principle-based approach for determining revenue recognition. The new standard requires significantly more disclosure than previous generally accepted accounting principles (GAAP).

The standard affects all entities (public, private, and not-for-profit) that have contracts with customers. Exclusions include:

•Leases accounted for under ASC 840, Leases;
•Insurance contracts accounted for under FASB ASC 944, Financial Services—Insurance;
•Most financial instruments and guarantees (other than product or service warranties).