Description
This course is a text-based course providing an overview of Topic 606 (ASC 606) revenue recognition standard. The standard outlines five steps for proper compliance. At the surface, these steps seem simplistic. However, there are many considerations that should be considered within each step based on your process and industry. This course is designed to provide an overview of the technical guidance and outline the five steps involved in the revenue recognition model. We also explore some concepts to consider within each step and then evaluate some challenges that specific industries may have when complying with the standard.
The standard affects all entities (public, private, and not-for-profit) that have contracts with customers. Exclusions include:
- Leases accounted for under FASB Accounting Standards Codification (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).
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).
