Revenue Recognition
The recognition of revenue is among the most misunderstood areas of accounting, leading to ongoing arguments between management and auditors about how to account for various sales transactions. Revenue Recognition
brings clarity to the topic by focusing on Topic 606, Revenue from Contracts with Customers, which describes the five-step process for recognizing many types of revenue. The discussion includes the establishment of a contract, the determination of performance obligations, and how to set and allocate prices. The course covers many ancillary topics as well, including the treatment of variable consideration, noncash consideration, price discounts, subsequent price changes, consignments, licensing, repurchase agreements, disclosures, and more.
Format
PDF Course
Level
Overview
Duration
4 Hours
Course Information
Author: Steven Bragg
Course Number: AC1074
Table of Contents
Chapter 1. Revenue Recognition
Chapter 2. Other Revenue Topics
Chapter 3. Revenue Presentation and Disclosure
Chapter 4. Management of Revenue Recognition
Learning Objectives
- Identify the evaluation criteria for a contract, the components of the transaction price, and when a contract modification triggers treatment as a new contract.
- Recognize the accounting treatment pertaining to customer acceptance clauses, rights to acquire additional goods, donations, asset repurchases, and breakage.
- Recognize the situations under which contract liabilities occur, and when disaggregation is used.
- Specify the methods used to control which third parties are recognized as customers, and to control the use of justification documents for standalone pricing.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Accounting
Prerequisites: None
Advance Preparation: None
Latest Review Date: March 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.
