Revenue Recognition Methods

What You Will Learn

• 1 Learn the foundations of revenue recognition and its role in financial reporting.
• 2 Understand the core principles of ASC 606 and IFRS 15 for revenue from contracts with customers.
• 3 Apply the five-step model to identify contracts and performance obligations.
• 4 Determine and allocate transaction price including variable consideration.
• 5 Recognize revenue when performance obligations are satisfied, over time or at a point.
• 6 Account for contract costs, including incremental costs to obtain and fulfill contracts.
• 7 Prepare revenue recognition disclosures required by accounting standards.
• 8 Analyze contract modifications and their impact on revenue recognition.
• 9 Evaluate warranty and licensing arrangements under the new standards.
• 10 Identify principal vs. agent considerations and other complex issues.