This course provides an overview of the key principles related to both revenue recognition and leasing transactions. The revenue recognition guidance is included within ASC Topic 606 and includes a five-step model identifying a contract, identifying performance obligation, determining the transaction price, allocating the transaction price to performance obligations, and recognizing revenue. The lease accounting and reporting requirements are outlined in ASC Topic 842. This topic addresses areas such as how to correctly identify a lease within a contract, as well as the overall recognition, measurement, subsequent measurement, and disclosure requirements.
Learning Objectives
Upon completion of this chapter, you will be able to:
• List the five steps involved in the new revenue recognition model
• Recognize the considerations involved in identifying whether a contract exists
• Identify the considerations involved with measuring the transaction price
• Recognize the steps involved in allocating the transaction price to performance obligations
Major Topics
Revenue Recognition
Identifying the Contract(s) with a Customer
Identifying the Performance Obligations in the Contract
Determining the Transaction Price
Allocating Transaction Price to Performance Obligations
Recognizing Revenue When (or as) the Entity Satisfies a Performance Obligation
Lease Transactions
Effective Dates for the New Standard
Lease Classification for a Lessee
Subsequent Measurement Requirements
