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 identifying valid contracts and determining performance obligations.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the criteria for contract validity under ASC 606
Recognize complexities in multiple contracts with the same customer
Determine the effects of contract modifications on revenue recognition
Differentiate between contract cancellations and terminations
Identify distinct performance obligations within contracts under ASC 606
Recognize the criteria for determining if goods or services are separately identifiable
Differentiate between bundled offerings and individual performance obligations
Determine the impact of customization on performance obligations in contracts
Recognize the impact of changes in customer requirements on performance obligations
Major Topics
Multiple Contracts with Same Customer
Enforceability & Payment Terms
Contract Modifications
Cancellations or Terminations
Determining Performance Obligations
Understanding Performance Obligations
Promised Goods or Services
Bundled Offerings
Changes in Customer Requirements
Long-Term Contracts
