Financial Accounting Issues

Revenue Recognition - Part 1

In 2014, after years of deliberations, the Financial Accounting Standards Board (the FASB) and the International Accounting Standards Board (the IASB) jointly issued the Accounting Standard Update (ASU) No. 2014-09 (codified primarily in ASC 606) and IFRS 15, respectively. ASC 606, the new revenue standard, replaces virtually all (including industry-specific) U.S. GAAP revenue guidance with a single model. The standard does not just change the amounts and timing of revenue but potentially affects organizations’ financial statements, business processes and internal control over financial reporting. The standard also affects other related accounting topics such as contract modification, rights of return, licensing, principal-versus-agent considerations, and income tax. Moreover, the standard creates new and expanded disclosure requirements.

In light of the new revenue standard, organizations need to reassess their current revenue accounting processes and systems and implement changes required to maintain compliance with the new guidance. This revenue recognition series (Parts 1, 2, and 3) reorganizes the guidance contained in ASC 606, to follow the five-step revenue recognition model along with other guidance impacted by this standard. The series also provides examples to illustrate the application. These revenue courses are designed to help you navigate the complexities of this standard, identify the implications of it, and prepare for implementation. These courses provide a working knowledge of the fundamentals of the revenue standard that can be applied, regardless of the company size, in the real world.

Learning Objectives:

  • Recognize the improvements to revenue accounting through the release of ASC 606.
  • Cite the key changes of the revenue recognition practice compared to former ASC 605.
  • Recognize the impact of the revenue standard on organizations.
  • Identify the applicability of the revenue standard.
  • Recognize the challenges and impacts related to each transition method.
  • Recognize the key concepts of the revenue recognition model.
  • Identify the difference between U.S. GAAP and IFRS revenue recognition practices.


Prerequisites/Advanced Preparation:

General Accounting


Speaker / Author:

Steve Spafford, MBA, CPA, has over 20 years’ experience as a CPA working with large public accounting firms, and in numerous executive roles at multinational public corporations. He is a member of DeltaCPE LLC, a leading publisher of continuing professional education courses for CPAs, and has edited CPA ethics courses provided to over 35 states.

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Price (USD)

Standard: $24.95

Details

Course Code : 99DEL52

Release Date : 11/24/2020
Expire Date : 11/30/2022
Credits :
CPE 1.00

Course Level : Overview
Length : 50min
Course Type : QAS Self-Study

Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Accounting
Theme : Financial Reporting Issues

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