This course provides an overview of critical challenges companies encounter under ASC 606, emphasizing several key areas that can be particularly challenging for effective revenue recognition. This includes distinguishing between recognizing revenue over time versus at a point in time as well as principal versus agent considerations.
Learning Objectives
- Identify factors that influence the determination of control transfer in a contract
- Recognize implications of transferring control over time versus at a specific point in time
- Determine the significance of contract terms in assessing when control transfers to a customer
- Identify key factors that determine whether an entity acts as a principal or an agent
- Recognize best practices for conducting principal vs. agent evaluations
Major Topics
- Measuring Progress
- Output Methods
- Input Methods
- Factors Supporting Principal Conclusion
- Factors Supporting Agent Conclusion
- Mixed Conclusion (Both Principal and Agent)
