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 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.
This course series, Revenue Recognition - Part 1, 2 and 3, v3.0, reorganizes the guidance contained in ASC 606, to follow the five-step revenue recognition model along with other guidance impacted by this standard. It also provides examples to illustrate the application. The course is designed to help you navigate the complexities of this standard and identify the implications of it. It provides a working knowledge of the fundamentals of the revenue standard that can be applied, regardless of the company size, in the real world.
Part 3, the final part of this course series, covers Other Revenue Topics, Presentation and Disclosure, and the Internal Control over Financial Reporting.
Learning Objectives:
After completing this course, participants should be able to:
- Identify the presentation and disclosure requirements
- Recognize the requirements for other revenue topics (e.g., warranties, principal-versus agent, licensing)
- Recognize the indicators for potential misstated revenue recognition
Prerequisites/Advanced Preparation:
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.