Understand the New Guidance on Recognizing Revenue in Contracts with Customers
ASC 606—the accounting standard for recognizing revenue in contracts with customers—took effect for most public companies in January 2018. Feeling behind?
Catch up by joining Samuel Monastra in a comprehensive overview of the guidance and how its principles will affect your reporting on what the Financial Accounting Standards Board (FASB) terms “the nature, amount, timing, and uncertainty of revenue received from contracts with customers.”
The guidance, co-issued back in May 28, 2014 by FASB and the International Accounting Standards Board (IASB) and which goes into effect for non-public entities in 2019, is designed to be an improvement over previous Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) standards.
Because revenue is so key to all types of business decisions, it’s important to get it right. It’s “one of the most important measures used by investors in assessing a company’s performance and prospects,” FASB notes. Yet, when it comes to contracts with customers, understanding the conditions under which to recognize revenue can be tricky. This session will take you through each required step, from identifying your contractual obligations to determining and allocating the associate transaction price to performing technical analysis.
After attending this session, you’ll be able to:
Understand the new revenue standard’s 5-step application model
Identify the customer contract for revenue recognition purposes
Identify the performance obligation for revenue recognition purposes
Identify and determine the transaction price
Identify various revenue streams, and prepare technical analysis
Prepare the reporting disclosures for the notes to the financial statements
Samuel A. Monastra, CPA has more than 20 years of experience in public accounting. He is a recognized expert in financial reporting with a particular emphasis on Revenue Recognition, IASB/ FASB Convergence, IFRS, Business Combinations, Asset Impairments, and Financial Statement Disclosures. Samuel h...