The new Revenue Recognition Standard (ASC 606) dramatically changes the way you, your company, or your clients, recognize revenue by replacing existing US GAAP with a new core principle and a 5-Step Process. In this hands-on workshop, you’ll gain an in-depth understanding of the New Standard and learn how to make necessary changes to your:
- Key financial measures and ratios and IT systems
- Accounting, sales and contracting processes and internal controls
- COVID-19 response
To help accountants and other financial professionals understand the latest accounting rules for Revenue Recognition. You’ll gain the confidence to comply with the core principles and 5-Step Process for recognizing revenue required by ASC 606. The course will also highlight differences with previous GAAP. Real-world examples and case studies will guide participants to practical solutions for their specific circumstances.
- Recognizing revenue under the 5-Step Model
- Comparing the New Standard with prior GAAP, including review of significant changes and problem areas
- Timeline, action plan, and implementing the transition process
- Costs to obtain a contract
- Principal vs. agent
- Collectability
- Licenses
- Contract modifications
- Combining and segmenting contracts
- Multiple deliverables
- Significant financing components and the time value of money
- Significant changes from prior GAAP, including bill and hold transactions, percentage of completion method, breakage and escheats, fixed fees, one-time fees, and gross vs. net
- Specific industry illustrations
- Understanding and complying with quantitative and qualitative disclosure requirements
- Retrospective vs. modified retrospective adoption—practical expedients and transition issues
- The latest deliberations of the Joint Transition Resource Group and FASB’s responses
- The impact of COVID-19
Note: Participants are encouraged to bring examples to learn how the New Standard applies to their situation.