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 licensing arrangements, with an emphasis on how to recognize revenue from agreements that grant customers rights to use or access intellectual property. This course also addresses the requirements and challenges with respect to financial statement disclosures.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify criteria for determining whether a license is distinct under ASC 606
Distinguish between licenses that grant a right to use IP and those that grant a right to access IP
Recognize the differences between functional and symbolic intellectual property IP
Determine when revenue should be recognized for licenses involving functional IP
Select the appropriate revenue recognition method for licenses that provide access to evolving IP
Identify key financial statement disclosurerequirements under ASC 606for revenue recognition
Recognize required disclosures about contract nature and revenue policies
Identify the timing of revenue recognition disclosures based on ASC 606 guidelines
Major Topics
Licensing Arrangements and Intellectual Property
License Distinct
Nature of License
License Renewals
Financial Statement Disclosures
Revenue Recognition Disclosures
Contracts with Customers
Significant Judgments
Assets Recognized from Costs to Obtain or Fulfill a Contract
Ensuring Completeness
Practices to Avoid
