- NY Credits : 5.0
- TX Credits : 5.0
On May 28, 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) (collectively, 'Boards') issued their final standard on revenue from contracts with customers. The standard was issued as Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, by the FASB and was issued as International Financial Reporting Standard (IFRS) 15, Revenue from Contracts with Customers, by the IASB. This standard establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. It supersedes most previous revenue recognition guidance, including industry-specific guidance. Subsequent to the issuance of ASU 2014-09 and before the effective date, the FASB and IASB issued amendments to provide additional clarifications and practical expedients. The FASB's amendments and clarifications were contained in ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10, Identifying Performance Obligations and Licensing, ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. The IASB issued amendments to IFRS 15, Clarifications to IFRS 15 Revenue from Contracts with Customers. While these amendments and practical expedients introduce some differences between US GAAP and IFRS, the requirements remain largely converged.
This course is most beneficial to professionals new to revenue recognition reporting who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to this subject.
Upon successful completion of this course, the user should be able to:
recognize the scope and application of ASU 2014-09,
identify the key terms and steps used in FASB ASC Topic 606,
recognize the criteria necessary for a contract to exit under Topic 606,
recognize the auditing standards that affect audit planning,
recognize the characteristics and implications of a performance obligation,
identify how transaction price is allocated to performance obligations,
recognize how and when revenue is recognized when the performance obligation is satisfied, and
identify the proper way of presenting and disclosing required information related to revenue recognition.