ASC 606 Disclosure Requirements in Practice: Contracts with Customers 1.5 CPE

Note: This course title has been enhanced from what you will see on the first screen of the recording.  The enhancement was for purposes of allowing the audience to have a better understanding of the content.  The course information did not change only the course name updated.

Investors and other financial statement have provided comments to the SEC on revenue-related disclosures. They felt the standard did not provide sufficient detail to perform detailed analysis.

One of the goals of the new standard is to introduce disclosure requirements that improve the information communicated in financial statements.

The new standard requires additional disclosures to better communicate the nature, amount, timing, and uncertainty of an entity’s revenue and cash flows (ASC 606-10-50-1). Filers are required to provide qualitative and quantitative information about the following:

• Contracts with customers
• Significant judgments made in applying the new standard
• Assets recognized from the costs to obtain or fulfill a contract

An entity is required to disclose revenue recognized from contracts with customers as well as impairment losses on any contract assets arising from those contracts. Disclosure is required unless these amounts are presented separately on its financial statements.

Topics Covered: The standard also requires information about the following categories:

• Disaggregation of revenue,
• Contract balances,
• Performance obligations

This session will deal directly with disclosure requirements for the standard. Several courses currently exist on the platform related to an overview of the standard and deep dive into individual steps of the standards.

Prerequisites

No advanced preparation or prerequisites are required for this course.
Audience: Anyone working with the revenue recognition standard including:
• CEO’s
• Boards
• CFO’s
• Financial and Accounting Personnel
• Internal and External Auditors.

Learning Objective

• Explore and examine why more robust disclosure requirements are needed.
• Discover and evaluate components of contract balances required to be disclosed.
• Explore components of performance obligations required to be disclosed.
• Identify and evaluate components of significant judgements that must be disclosed.
• Explore and evaluate components of transaction price that must be disclose.
• Discover and evaluate assets recognized from costs to obtain or fulfill a contract that must be disclosed.
• Discover and discuss components that must be reported in interim reporting.

Last updated/reviewed: March 8, 2024