Update on Revenue Recognition Issues

In anticipation of a new ASC Update (and IFRS Standard) on Revenue, this course will cover the most recent information available at the time of the class. In its first two exposure drafts, both boards (FASB and IASB) have addressed revenue recognition through contracts with customers. A five-step approach has been outlined: i) Identify contract with the customer; ii) Identify the separate performance obligations in the contract; iii) Determine the transaction price; iv) Allocate the transaction price to the separate performance obligations in the contract; v) Recognize revenue when (or as) the entity satisfies a performance obligation. Regardless of the status of the final release date, these steps remain the core of any new pronouncement and should be understood as early as possible. Their implications could have a major impact on the financial statements of your company or your client's company. Regardless of the final release of such documents, CPAs need to be prepared to address new treatments for revenue recognition.