This detailed course offers an in-depth exploration of the FASB's ASC Topic 606 revenue recognition standards, focusing specifically on the five-step model. The benefit of this course lies in its thorough breakdown of each step, from contract identification to revenue recognition. Participants will gain a comprehensive understanding of the key elements involved in revenue recognition, including the evaluation of contracts, determination of transaction prices, and allocation to performance obligations. By the end of the course, attendees will be equipped with practical knowledge and skills to apply these standards effectively in their professional roles, enhancing their value as accounting and finance experts.
Learning Objectives
Upon completion of this course, participants 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
Identifying the Contract(s) with a Customer
Definition of Customer
Combination of Contracts
Portfolio Level vs. Contract-by-Contract Basis
Contract Modifications
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
