Revenue Recognition - Recognize Revenue

Description

This segment is designed to evaluate Step Five of the new model dealing with recognizing revenue which is the final step in applying the new revenue recognition standard. For performance obligations that are fulfilled at a point in time, revenue is recognized at the fulfillment of the performance obligation. For performance obligations to be satisfied over time, an entity must decide how to appropriately measure the progress and completion of the performance obligation. A performance obligation is satisfied when or as control of the good or service is transferred to the customer. There are several issues companies should consider in applying step 5 of the standard:

•   Determining if a Performance Obligation is satisfied over time
•   Identifying indicators of transfer of control of good/services
•   Utilizing input and output methods to measure progress of revenue recognition
•   Understanding stand-ready obligations and how to apply discounts

Highlights

	
• Revenue Recognition
	
• Accounting

Objectives

	
• Explore step five:  recognize revenue
	
• Identify how to recognize revenue satisfied over a period of time
	
• Identify criterion – simultaneous receipt and consumption
	
• Identify criterion two – creation or enhancement of an asset controlled by the customer
	
• Identify criterion three to recognize revenue over a period of time alternative use asset
	
• Explore an alternative use asset example
	
• Explore how to recognize revenue over a period of time
	
• Explore how to manage revenue satisfied at a point in time
	
• Explore how to measure progress of performance obligations and properly recognize revenue
	
• Identify restrictions for measuring progress
	
• Identify principles for measuring progress

Designed For

Accountants, Finance Professionals, Auditors, Internal Auditors